KUALA LUMPUR (May 8): Go Hub Capital Bhd (KL:GOHUB), a provider of information technology (IT) services catering to the transportation sector, said on Wednesday that it has received approval for its listing on the ACE Market of Bursa Malaysia. 

The approval marks another step forward for Go Hub’s initial public offering (IPO) since the company filed its prospectus exposure on Oct 12, 2023.

“Securing the listing on ACE Market marks a significant milestone for Go Hub, as we continue to expand our market presence in the local transportation segments,” Go Hub’s executive director and chief executive officer Tan Cherng Thong said in a statement. 

Go Hub is mainly involved in providing enterprise IT services with a focus on transportation sector. This includes the development of customised software systems and the integration of hardware and software systems in the bus and rail segments. 

The company also develops transportation IT software, such as the terminal operating system and the bus operating system, aimed at enhancing the operational efficiency of public transportation infrastructures.

According to Go Hub, the IPO will involve the issuance of 107.18 million new ordinary shares. Of these, 20 million shares will be made available to the Malaysian public, 12 million shares will be reserved for eligible directors and employees, and 75.18 million shares will be allocated for private placement to institutional and selected investors.

There is no separate offer-for-sale tranche. The company is also exempted from Bumiputera equity requirement as its operating company NSS IT Solution Sdn Bhd has the Malaysia Digital Status, formerly known as the MSC Malaysia Status.

Go Hub plans to use the IPO proceeds for business expansion, repayment of bank borrowing, and as working capital.

On the financial front, Go Hub’s earnings have risen over the past three financial years, with the company reporting a profit after tax of RM6.06 million in FY2022, compared to RM2.41 million in FY2021 and RM2.27 million in FY2020. 

Revenue has also grown, reaching RM26.55 million in FY2022, up from RM20.31 million in FY2021 and RM18.97 million in FY2020.

UOB Kay Hian Securities (M) Sdn Bhd is serving as the principal adviser, sponsor, underwriter and placement agent for the IPO.