KUALA LUMPUR: Bus services provider HI Mobility Bhd
, en route to its listing on Bursa Malaysia's Main Market on March 28, 2025, aims to raise RM115.9 million through its initial public offering (IPO).
Its executive director and chief executive officer, Lim Chern Chen said the proceeds will be used to strengthen its core competencies in providing cross-border and local bus services by expanding its vehicle fleet, depots, and digital infrastructure to support business growth in Malaysia.
"We are focused on developing an accessible and efficient public transportation system through technology.
"Our digital infrastructure enhances operational efficiency, helps manage costs, ensures driver safety, and fosters customer engagement to build loyalty," he said in his speech at the HI Mobility Prospectus Launch today.
The IPO entails a public issue of 95 million new shares at RM1.22 per share, along with an offer for sale of 35 million existing shares.
According to the prospectus, RM70 million, or 60.4 per cent of the proceeds, will be allocated for its bus fleet expansion, including the acquisition of electric and internal combustion engine buses.
Another RM15 million (12.9 per cent) is earmarked for expanding electric vehicle charging infrastructure, with installations planned for various depots and routes.
"In line with our technological enhancement strategy, RM5 million (4.4 per cent) of the proceeds will be invested in hardware upgrades, integrating artificial intelligence to improve vehicle monitoring and driver management, among other initiatives.
"The remaining RM25 million (22.3 per cent) is intended for working capital and defraying listing expenses," according to the prospectus.
On business growth, Lim expects a steady growth rate of 10 per cent, driven by government efforts to enhance cross-border collaboration.
"With programmes like the Johor-Singapore Special Economic Zone becoming more concrete, we anticipate increased cross-border trade and cooperation between the two countries. Through government initiatives and incentives, we see steady business growth ahead," he added.
The public application for the IPO shares opens today and closes at 5 pm on March 19, 2025.
Maybank Investment Bank Bhd is the principal adviser, sole placement agent, and sole underwriter for the IPO. - Bernama
