KUALA LUMPUR: Highway operator Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) expects to raise RM445.3 million from the initial public offerings (IPO) of its highway business trust.
Prolintas Infra Business Trust is due to be listed on Bursa Malaysia's ACE Market on March 25.
The IPO entails 539.0 million shares, including an over-allotment option of 70.3 million shares, at 95 sen each.
Prolintas said of the institutional offering of up to 422.94 million shares, 285.44 million will be distributed to institutional and selected investors, excluding Bumiputera investors approved by the Investment, Trade and Industry Ministry.
A total of 137.5 million shares are set aside for Bumiputera investors approved by the ministry.
The remaining offering of up to 45.75 million units, including the retail portion of 27.50 million units, are for the public via balloting.
This represents about 2.50 per cent of total units and 18.25 million units reserved for eligible persons, representing about 1.66 per cent of total units.
The IPO involves four Prolintas main highways. They are the Ampang-Kuala Lumpur Elevated Highway Akleh), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Highway (LKSA) and Kajang Dispersal Link Expressway (Silk).
Prolintas Managers Sdn Bhd chairman Datuk Ikmal Hijaz Hashim said the purposed of listing the highways has two main objectives - to broaden Prolintas' funding avenues and prepare the company for future strategic infrastructure projects.
"Simultaneously, it presents an attractive opportunity for investors to participate in Prolintas' continued growth trajectory.
"Prolintas Managers as the trustee-manager is set up with an experienced board of directors and key management, with the relevant background of combined industry expertise."
Ikmal added that the setup is reinforced by the company's reputable directors and senior management team to provide investors with assurance of consistent and dependable leadership.
Prolintas group chief executive officer Datuk Mohammad Azlan Abdullah said there will be a toll increase every 10 years, specifically in 2033 and 2034, pending the government's review.
"There will be toll increases for three highways: the GCE, LKSA and Silk, except for Akleh. If the government does not approve the toll increases, they will need to provide compensation," he added.