Prolintas Infra Business Trust IPO: Maximizing Dividend Yield & Strategic Growth - Malaysia

Prolintas’ four key highways, namely, Ampang-Kuala Lumpur Elevated Highway (Akleh), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Highway (LKSA), and Kajang Dispersal Link Expressway (SILK).

The Highways owned by Prolintas

Permodalan Nasional Bhd's (PNB) business trust Prolintas Infra Business Trust, which is set to be listed on Bursa Malaysia on March 25, is targeting to pay out a total distribution of RM70 million for the financial year ending Dec 31, 2024 (FY2024), said Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) chief executive officer Datuk Mohammad Azlan Abdullah.

Prolintas - IPO Schedule

The purpose of Prolintas Infra Business Trust's IPO is to:

1. Maximize Dividend Payout: Prolintas aims to raise funds through the IPO to enable the business trust to pay out attractive dividends to unitholders. The structure of the business trust allows for dividends to be paid out from operating cash flow rather than retained earnings, emphasizing the focus on maximizing dividend yield.
2. Attract Investors: By offering an implied dividend yield of about 6.69% for FY2024 and targeting yearly distributions of at least 90% of the business trust's distributable amount, Prolintas seeks to attract interest from investors looking for stable returns.
3. Raise Capital: The IPO will raise RM445.3 million through an offer-for-sale of units, representing a significant portion of the total units in issue. This capital will be used to support the operations and expansion plans of Prolintas Infra Business Trust, particularly in maintaining and improving its four concession highways.
4. Establish Market Presence: Listing on Bursa Malaysia's Main Market provides Prolintas Infra Business Trust with visibility and credibility in the market, positioning it as the country's first business trust of its kind, focused on managing and operating key highways.
5. Enable Strategic Initiatives: The IPO will also enable Prolintas to embark on future strategic infrastructure initiatives, leveraging its position as a listed entity to access additional funding and resources for potential projects.

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In order to apply IPO in Malaysia, you must have a Direct CDS Account Number!

​To register 15-Digit Direct CDS Account Number, 

​1. Download M+ Global APP
2. Register Online
3. Choose Malaysia Market
4. Fill up my Invitation Code: UBZQ
5. Pay RM11 for Bursa Direct CDS Number Registration
​6. Wait for the Account Opening Email