KUALA LUMPUR: The listing of Westports Holdings Bhd, a port operator partly owned by Hong Kong billionaire Li Ka-shing, will rank as Malaysia's second biggest this year.
The company will raise RM2.2 billion from the sale of 813.19 million shares under its listing exercise at an indicative retail price of RM2.50 each.
(UMW Oil & Gas Bhd is expected to raise RM2.4 billion from a listing some time in the fourth quarter of this year.)
According to its prospectus, which was launched here yesterday by Prime Minister Datuk Seri Najib Razak, Westports will offer 102.30 million shares to the public and directors at RM2.50 per share.
The institutional offering will be 710.89 million shares to Malaysian and foreign institutions and selected Bumiputera investors via a bookbuilding.
The total listing exercise involves 3.41 billion shares and this would see a market capitalisation of RM8.52 billion.
The gross proceeds from the IPO will accrue entirely to the shareholders.
The listing date of Westports, which counts state investor Khazanah Nasional Bhd as a shareholder, is October 18.
The company did not issue new shares under the listing exercise.
Westports chief executive officer Ruben Emir Gnanalingam said the company is targeting dividend payout ratio of 75 per cent per year of its total net profit.
For the six months ended June 30 2013, Westports' audited revenue was RM750.08 million while profit was RM198.39 million.
Westports has a 69 per cent share of container volume at Port Klang and handled container throughput of 6.9 million 20-foot equivalent units (TEUs) last year. It is targeting 9.5 million TEUs this year.
"Our capital expenditure for this year for capacity expansion is RM658 million and it's all from internal funds. Next year, we are spending RM400 million," Ruben said at a press conference after the prospectus launch.
Malayan Banking Bhd, Goldman Sachs Group Inc and Credit Suisse Group AG are among financial institutions arranging the IPO.