KUALA LUMPUR: Johor-based bus operator HI Mobility Bhd commenced trading on the Main Market of Bursa Malaysia at a premium of 4.1%, after raising proceeds of RM115.9mil from an initial public offering (IPO).
The share opened at RM1.27 a share, a five sen increase from its IPO price of RM1.22, and rose to an intra-morning high of RM1.33.
At the time of writing, the share had retraced to its reference price of RM1.22 after 28.41 million shares changing hands, making it the second most actively traded counter on Bursa Malaysia.
Executive director and CEO Lim Chern Chuen had revealed during the launch of the IPO prospectus the proceeds of the fundraising 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.
According to the prospectus, RM70mil, or 60.4% of the proceeds, will be allocated for its bus fleet expansion, including the acquisition of electric and internal combustion engine buses.
Another RM15mil (12.9%) is earmarked for expanding electric vehicle charging infrastructure, with installations planned for various depots and routes.
RM5mil (4.4%) of the proceeds will be invested in hardware upgrades, integrating artificial intelligence to improve vehicle monitoring and driver management, among other initiatives.
The remaining RM25.9mil (22.3%) is intended for working capital and defraying listing expenses.
