KUALA LUMPUR (June 12): Information technology (IT) services firm Go Hub Capital Bhd on Wednesday launched its initial public offering (IPO) that will raise RM37.5 million for its listing on the ACE Market.
The IPO, priced at 35 sen per share, comprises only public issuance of 107.18 million new shares, according to its official prospectus posted to Bursa Malaysia. There is no separate offer-for-sale of existing shares tranche.
Applications for the IPO will close on June 20 and listing has been scheduled for July 3.
“Our listing is in line with our growth plans and strategies to scale up our operations, expand our solutions offerings and expand our reach overseas,” Tan Cherng Thong, executive director and chief executive officer of Go Hub, said in a statement.
Go Hub is mainly involved in providing enterprise IT services that caters primarily to the transportation sector. The company develops customised software systems and provides 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.
Under the IPO, Go Hub is offering 20 million shares to the Malaysian public and 12 million shares 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.
Proceeds raised from the IPO will be primarily utilised to fuel Go Hub's expansion plans that will cost RM24.7 million. The company has earmarked RM10.1 million for up to 49 new staff, RM6.5 million for equipment and tools, and RM3.7 million for a new office building as its new headquarters.
The rest of the capital expenditure will go toward setting up a new integrated centre, design and development and other expenses. The company will also set aside RM4 million for repayment of bank borrowings, RM4.8 million for working capital and the remainder to defray listing expenses.
UOB Kay Hian Securities is the principal adviser, sponsor, underwriter and placement agent for Go Hub’s IPO.
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