KUALA LUMPUR: Bus Cap Bhd has secured an underwriting agreement with TA Securities Holdings Bhd for 30.67 million new initial public offering (IPO) shares to be issued to the Malaysian public and eligible persons.
The bus builder, wihch is slated for a listing on the ACE Market of Bursa Malaysia, has proposed an IPO comprising 107.35 million new shares, representing about 28% of the enlarged issued share capital.
The company has also made an offer for sale of 19.17 million existing shares, or about 5% of its enalrged issued share capital.
Of the new offer shares, 19.17 million will be made available for application by the Malaysian public while 11.5 million will allocated to eligible persons who have contributed to the success of the group.
It will also offer 76.68 million shares via private placement to selected investors.
With the underwriting structure in place, Bus Cap said it is fully focused on preparing for the prospectus launch while laying the groundwork for its operational expansion.
"As the commercial transport sector continues to modernise across Malaysia and Singapore, our transition to the public markets will unlock greater capital flexibility, enabling us to accelerate production capacity, enhance operational efficiency, and meet the growing demand for higher-capacity fleets," said Bus cap executive director Bernard Ng Chong Yan in a statement.
Bus Cap is principally involved in the design and manufacture of bus bodies, the assembly of bus bodies with chassis sourced from principals, the installation of fittings and accessories to form completely built-up buses, and the provision of repair and maintenance services.
The group has built a strong presence in Malaysia’s bus building industry, serving bus operators, travel companies, and government agencies, while successfully expanding its footprint into the Singapore market.
According to the statement, the IPO is expected to directly support Bus Cap’s next phase of structural growth.
Key expansion initiatives include the construction of a new production facility, strategic investments into semi-automated fabrication technologies to drive operational productivity, and the strengthening of working capital to fulfil an expanding order book.
TA Securities has been appointed the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
