RM1.16 FAIR VALUE FOR SWIFT HAULAGE
Company’s growth dependent on successful implementation of business strategies
PUBLIC Investment Bank Bhd (PublicInvest) has derived a fair value of RM1.16 for integrated logistics services provider Swift Haulage Bhd, which will be listed on the Main Market of Bursa Malaysia soon.
The research firm said Swift Haulage’s business strategy was to focus on its core competencies and strengths in integrated logistics.
“We derive a fair value of RM1.16 based on 14 times priceearnings multiple of its forecast financial year 2023 earnings per share of 8.3 sen,” said PublicInvest in a note yesterday.
It added that Swift Haulage was set to strengthen and expand its operational facilities, including warehousing and container depots, as well as fleet operations.
Swift Haulage is principally involved in the provision of integrated logistics services comprising container haulage, land transportation, warehousing and freight forwarding agency services.
Its integrated logistics operations are supported by its fleet operations in Malaysia and Thailand, including 1,546 prime movers, 5,518 container trailers, 811 box or curtain-sider trailers, 53 trucks and 42 CNG tankers.
Swift Haulage operates warehouses with a total storage capacity of 849,371 sq ft and container depots with total capacity of 28,500 twenty-foot equivalent units.
PublicInvest said Swift Haulage’s growth would be dependent on the successful implementation of its business strategies and future plans, which entailed the construction of a new warehouse, acquisition of more landbanks and cold-chain logistics companies, and expansion of its vehicle fleet.
Swift Haulage expects to raise from RM161.9 million from its initial public offering (IPO), which entails the issuance of 157.14 million new shares and an offer for sale of up to 157 million existing shares.
It plans to utilise 50.7 per cent of the proceeds for capital expenditure and another 43.1 per cent to repay borrowings.
MIDF Investment is the principal adviser, joint lead bookrunner, joint bookrunner, managing underwriter and joint underwriter for the IPO.