News / Malaysia's MTT orders feeder pair as it eyes $200m IPO

Credit MTT Shipping and Logistics

Malaysian feeder operator MTT Shipping and Logistics has ordered its first newbuildings since 2018: a pair of 1,800 teu ships from Penglai Zhongbai Jinglu Ship Industry in China for delivery in 2024.

The newbuilding price was not disclosed, although recent similar orders have seen a bill for around $30m.

MTT Shipping is part of the MTT group, founded by Dr Kenny Ong Kean Lee, who is also involved in the real estate and education sectors in Malaysia. Director Ooi Lean Hin is also chairman of the Shipping Association of Malaysia.

In 2018 it bought another 1,800 teu pair, from Zhoushan Changhong International Shipbuilding in China, the MTT Sandakan and MTT Sapangar, which were delivered last year.

Last June, riding on historically high freight rates, MTT applied to be listed on its country’s stock exchange, the Bursa Malaysia. While a fund-raising target and listing timeframe was not disclosed, Malaysian media claimed in February MTT Shipping aimed to raise $200m through an IPO this year. Up to 270m shares will be offered to institutional investors and 30m shares will be offered to retail investors.

MTT Shipping’s container services cover routes between peninsular and east Malaysia and around South-east Asia. It owns 15 containerships, with a total capacity of 21,985 teu, seven of which are chartered to other operators. It also operates four container depots in Malaysia.

Proceeds from the IPO will go towards working capital and acquiring more ships to enable MTT Shipping to add new service routes, both within Malaysia as well as overseas.