Prolintas group CEO Azlan Abdullah said the main purpose of the Islamic business trust listed on Bursa’s Main Market is to maximise dividend yield.
“The immediate focus is to continue to keep our operating expenditure at an efficient level, so that our cash can at the end of the day be optimised to give returns to our investors,” he said at a press conference.
Based on the initial public offering (IPO) price of 95 sen per unit, its implied distribution yield stands at approximately 6.7% for FY2024.
According to the trust’s distribution policy, the trustee-manager aims to pay out at least 90% of its distributable income to its unitholders on an annual basis, targeting to distribute RM70 million for the financial year ending Dec 31, 2024.
Azlan said the Damansara-Shah Alam Elevated Expressway (DASH) and Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) were not included in the IPO because they were at an early stage of operations.
He said it would typically take up to seven years for highway concessionaires to break even at the earnings before interest, tax, depreciation and amortisation (Ebitda) level.
“Both highways are doing okay, but it is too early to look at the full potential of their performance right now,” he added.
Prolintas Infra BT’s market capitalisation stood at approximately RM1.05 billion based on 1.1 billion units issued at the IPO price.
The stock opened at RM0.95 per unit on its trading debut, the same level as its IPO price.
The highway operator received 7,211 applications for 126,172,600 units, with a total value of RM119.9 million, compared with the 27,500,000 units made available for application by the Malaysian public.
A total of 2,881 applications for 32,344,900 units were received for the Bumiputera portion, representing an oversubscription rate of 1.35 times. Meanwhile, 4,330 applications for 93,827,700 units were received under the other public portion, representing an oversubscription rate of 5.82 times.
An offering of 422,949,000 units made available to institutional and selected investors, including Bumiputera investors approved by the investment, trade and industry ministry, was fully subscribed.
The eight cornerstone investors secured for the IPO – Permodalan Nasional Bhd, AHAM Asset Management Bhd, AIIMAN Asset Management Sdn Bhd, Lembaga Tabung Haji, Maybank Asset Management Sdn Bhd, Maybank Islamic Asset Management Sdn Bhd, Kenanga Investors Bhd, and Kenanga Islamic Investors Bhd – have collectively subscribed for 70.9% of the institutional offering.
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