PROLINTAS MANAGERS SDN BHD & PROLINTAS LAUNCHES MALAYSIA’S FIRST LISTED BUSINESS TRUST, PROLINTAS INFRA BUSINESS TRUST
PROLINTAS MANAGERS SDN BHD & PROLINTAS LAUNCHES MALAYSIA’S FIRST LISTED BUSINESS TRUST, PROLINTAS INFRA BUSINESS TRUST
Prolintas Infra Business Trust focuses on highway construction, operations, maintenance, toll collection, and ancillary facilities to improve road users’ experience, safety and convenience.
Kuala Lumpur, 6 March 2024 – Prolintas Managers Sdn Bhd, the Trustee-Manager of Prolintas Infra Business Trust (Prolintas Infra BT or the Trust), which is Malaysia’s first business trust to be listed, and the promoter of Prolintas Infra BT, Projek Lintasan Kota Holdings Sdn Bhd (PROLINTAS), unveiled its initial public offering (IPO) prospectus today at the Hilton Kuala Lumpur. This is in conjunction with its listing on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities) which is scheduled to take place on 25 March 2024.
Established in 1995, PROLINTAS stands as the leading urban highway operator within the Klang Valley region, overseeing a comprehensive network of six strategically-positioned highways. The IPO exercise encompasses the listing via a business trust structure of PROLINTAS’s four key matured highways, namely, Ampang-Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Highway (LKSA), and Kajang Dispersal Link Expressway (SILK) (collectively, the “Highways”).
Being the nation’s first business trust to be listed, Prolintas Infra BT is set to offer its unitholders a unique proposition of sustainable distributions underpinned by the long-term stability of strategically-located highways in high-traffic and densely populated areas in the Klang Valley.
The IPO of Prolintas Infra BT involves the offering of up to 539,000,000(1) units in Prolintas Infra BT (IPO Units) comprising an offer for sale, representing up to 49%(1) of the total units in issue, at a retail price of RM0.95 per IPO Unit. Based on the total units in issue of 1,100,000,000 units and the aforesaid retail price, the market capitalisation of Prolintas Infra BT upon listing will have the potential to reach RM1.045 billion.
Note(s): (1) Assuming the Over-allotment Option of 70,300,000 units is fully exercised.
Out of the institutional offering of up to 422,949,000 IPO units, 285,449,000 IPO Units will be allocated to institutional and selected investors excluding Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) while 137,500,000 IPO Units are reserved for Bumiputera investors approved by MITI. The remaining offering of up to 45,751,000 IPO Units which encompasses the retail offering portion of the IPO comprises 27,500,000 IPO Units, representing about 2.50% of the total units in issue, which will be made available for application by the Malaysian public via balloting, followed by 18,251,000 IPO Units, representing about 1.66% of the total units in issue, which are reserved for application by the eligible persons.
Dato’ Ikmal Hijaz Hashim, Chairman of Prolintas Managers Sdn Bhd, highlighted that the intention behind listing the Highways is twofold: to diversify PROLINTAS’s funding sources, and to position the company to embark on future strategic infrastructure initiatives. Simultaneously, it presents an attractive opportunity for investors to participate in PROLINTAS’s continued growth trajectory.
“Prolintas Managers Sdn Bhd as the Trustee-Manager is set up with an experienced board of directors and key management, with the relevant background of combined industry expertise. This establishment is further supported by PROLINTAS Group’s distinguished directors and senior management team to assure investors of steadfast and reliable stewardship,” he elaborated.
Tracy Chen Wee Keng, Chief Executive Officer, AmInvestment Bank Berhad said, “It is a profound honour for AmInvestment Bank Berhad to undertake the integral roles of the Principal Adviser, Lead Bookrunner, Joint Bookrunner, Managing Underwriter and Joint Underwriter for this groundbreaking IPO. With 4 highway assets within the portfolio of the Trust, it will emerge as a key player in Malaysia’s vibrant infrastructure landscape.”
“This pioneering structure not only introduces a new dimension of innovation to the Malaysian capital market but also provides investors with an enticing opportunity for sustainable returns,” she concluded.
In conjunction with the launch, the application period of Prolintas Infra BT’s IPO will commence today and closes on 12 March 2024 at 5:00 pm.
AmInvestment Bank Berhad is the IPO’s Principal Adviser, Lead Bookrunner, Joint Bookrunner, Managing Underwriter and Joint Underwriter. CIMB Investment Bank Berhad and Maybank Investment Bank Berhad are Joint Bookrunners and Joint Underwriters, whilst RHB Investment Bank Berhad is a Joint Underwriter for the IPO.