KUALA LUMPUR (June 7): Go Hub Capital Bhd (KL:GOHUB) said on Friday it has signed an agreement with UOB Kay Hian Securities to underwrite its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.

The agreement marks another step forward for the company that provides information technology (IT) services catering to the transportation sector, after it had secured listing approval from Bursa Malaysia on May 8.

Under the agreement signed, UOB Kay Hian will underwrite 32 million IPO shares made available to the Malaysian public and eligible persons including directors and employees as well as persons who have contributed to the success of the group, Go Hub said in a statement. 

The IPO involves the public issuance of 107.18 million new ordinary shares, of which 20 million shares are allocated to the Malaysian public and 12 million to eligible persons. The remaining 75.18 million IPO shares will be privately placed to institutional and selected investors.

The company is exempted from Bumiputera equity requirement for the IPO as its operating company NSS IT Solution Sdn Bhd has the Malaysia Digital Status, formerly known as the MSC Malaysia Status.

Go Hub is mainly involved in providing enterprise IT services with a focus on the 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.

Proceeds raised from the IPO will be primarily utilised to fuel Go Hub's business expansion plans, which includes the expansion of its technical capabilities and workforce, said its executive director and chief executive officer Tan Cherng Thong.

"We are gearing up to expand our technological footprint and solution offerings within the transportation sector, and this IPO is a strategic step in that direction," he said.

"Our aim is to expand our IT solutions for the transportation industry, enhancing customer engagement through digital transformation, and exploring new opportunities in adjacent markets," Tan added.

UOB Kay Hian also serves as the principal adviser, sponsor, and placement agent for the IPO.