Prolintas Infra Business Trust Launches Malaysia’s First Business Trust IPO, Targeting RM445.3 Million

PROLINTAS INFRA BUSINESS TRUST

Opening of application 06 Mar 2024
Closing of application 12 Mar 2024
Balloting of application 14 Mar 2024
Allotment of IPO shares to successful applicants 22 Mar 2024
Tentative listing date 25 Mar 2024

KUALA LUMPUR (March 6): Prolintas Infra Business Trust on Wednesday began taking orders from investors for an initial public offering (IPO) that will gross RM445.3 million and is set for the country's first listing of a business trust.

The IPO, priced at up to 95 sen per share, is backed by eight of the so-called cornerstone investors that include Permodalan Nasional Bhd, Lembaga Tabung Haji, Maybank Asset Management Sdn Bhd and Kenanga Investors Bhd.

Cornerstone investors typically agree to buy a large chunk of IPO shares ahead of the IPO, and their presence helps in boosting the company's appeal to other potential investors.

The offering will close on March 12, and the listing is scheduled for March 25. The final IPO price, to be determined on March 13, will be equal to the lower of the retail price of 95 sen per share or the institutional price, according to the prospectus.

The IPO comprises an offer-for-sale of up to 468.7 million existing units, of which up to 422.95 million units have been allocated to institutional and select investors through bookbuilding. Also on offer are up to 45.75 million units under its retail tranche to the public, directors and other eligible individuals.
The eight cornerstone investors have agreed collectively to acquire 299.85 million IPO units at 95 sen per share as part of the institutional offering.

The funds raised from the IPO will go entirely to Projek Lintasan Kota Holdings Sdn Bhd owned by Permodalan Nasional Bhd. Prolintas Infra, which owns four highway concessions, will not get any of the proceeds.

AmInvestment Bank Bhd is the principal adviser for the IPO as well as the joint bookrunner and underwriter with CIMB Investment Bank Bhd and Maybank Investment Bank Bhd. RHB Investment Bank Bhd is also a joint underwriter.

Price RM0.95. Last year FYE rugi but got cornerstone investors. Still considering whey it’s good or not.

Good?

The funds raised from the IPO will go entirely to Projek Lintasan Kota Holdings Sdn Bhd owned by Permodalan Nasional Bhd. Prolintas Infra, which owns four highway concessions, will not get any of the proceeds.

Weird?

This post has been edited by kelvinfixx: Mar 6 2024, 04:22 PM

Those 4 highways ain’t great. And it’s loss making. My personal understanding is that they want to dispose of these unprofitable highways to the public/retail.

mahal giler

RM0.95 seunit...

Gov want to raise fund

Big, expensive, every holidays got free tolls by PMX.

Wonder if many use their highways.

#tayor

How come this ipo has no new public issue ? Only a big portion of offer for sale ( ofc) ...seems existing shareholders let go shares for cash

Still losing money atm, not sure if worth buying.. any sifu analysis?

This post has been edited by froz3nnoob: Mar 6 2024, 10:07 PM

Need to read the prospectus first
By paper maybe at loss due to some accounting requirement
Focus on cash flow more important

Weird cant find their ipo yet, their opening was on 6/3 isnt ?

already open on CGS itrade

If PLUS highway... Especially if including NSE...

Maybe I can consider...

This one seems so so only....

until Q3 2023 lose money... highway trust is new thing. but i think wont be boompipi

https://www.bursamalaysia.com/market_inform...?ann_id=3428445

Seriously wondering how this IPO trust gotten approvals??

Only profitable business can list??

I think i saw a nees saying this kind of ipo is first of his kind on KLcI

What ya 2 cent abt this stock? Planning to buy a bit to test

This post has been edited by froz3nnoob: Mar 7 2024, 03:20 PM

not sure about this IPO...

first time see this kind of Trust IPO..

later would think over it..

see what the IBs have to say about it.. can get some idea

"The reason why we set this up in the business trust structure is purely for the cash flow. Dividends will be paid out from the operating cash flow, which is revenue after operating cost rather than conventionally where it is paid out from the retained earnings.

"The focus for the trust is to ensure capability to pay out an attractive dividend yield.

“As we have already targeted a payout of RM70 million for the first year, it comes down to a yield of 6.7%. With this, we hope we can attract interest from investors," he said at the launch of the IPO prospectus on Wednesday.

Business trust is an asset class introduced in the Malaysian capital market following the release of the Securities Commission Malaysia's Business Trusts Guidelines which came into force on Dec 28, 2012. Conventional companies are restricted to paying dividends out of accounting profits, while business trusts can pay distributions to investors out of operating cash flows.

yield of 6.7%??

dividend play...

seems like one competitors to Tiger Bank (not same sector btw)

I will skip this ipo, short term loss making company & too expensive ipo.if ipo 25 sen, can consider.

This post has been edited by tomjason: Mar 8 2024, 08:16 AM