KUALA LUMPUR (Feb 24): HI Mobility Bhd has signed a retail underwriting agreement with Maybank Investment Bank Bhd in conjunction with the Johor bus company’s initial public offering (IPO) on the Main Market of Bursa Malaysia.

HI Mobility’s IPO exercise encompasses a public issuance of 95 million new ordinary shares, representing approximately 19% of its enlarged share capital. 

Under the proposed IPO, the public issue comprises 10 million shares for the Malaysian public and five million shares for eligible persons.  

The company will also set aside 47.5 million shares for Bumiputera investors, and 32.5 million shares for selected investors through private placement.

In addition to the public issue, the IPO also includes an offer for sale of 35 million existing shares by way of private placement to institutional and selected investors, accounting for 7% of its enlarged share capital.

“We are truly humbled to have reached this stage of our listing journey, and the signing of the underwriting agreement marks a significant milestone for the group,” said HI Mobility chief executive officer Lim Chern Chuen.

“We strive to grow the company and embark on a sustainable mobility through the electrification of our fleet, gradually transitioning the group into an energy efficient player in Malaysia’s public transportation sector,” he added.

HI Mobility did not provide a timeline about its IPO. However, the company will have six months to complete its listing upon approval.

The company is controlled by Lim Han Weng, who is also the executive chairman of floating production storage and offloading (FPSO) vessel operator Yinson Holdings Bhd (KL:YINSON) and substantial shareholder of offshore support vessel firm Lianson Fleet Group Bhd (KL:LFG), previously known as Icon Offshore Bhd.

Chern Chuen is the eldest son of Han Weng and the elder brother of Chern Yuan, the group chief executive officer of Yinson Holdings.

HI Mobility’s sole subsidiary is Handal Indah Sdn Bhd that plies the Johor–Singapore route under the Causeway Link brand as well as intracity bus service within Johor Bahru. The company currently operates a fleet of 616 buses, of which 53 are electric.

HI Mobility has confirmed orders for the purchase of 115 conventional and electric buses to be delivered progressively by March 2025. The total cost is estimated at RM58.7 million, of which RM19 million has been paid.

The company began two new contracts with government bodies to provide intracity bus services in Melaka and the Klang Valley this year. The contracts’ combined value is up to RM209.1 million, with revenue expected to be recognised from financial year ending Jan 31, 2025 (FY2025) till 2030.

“Through innovative mobility solutions, HI Mobility remains dedicated to building a greener future while delivering reliable and inclusive transport services for all,” Chern Chuen added.

In FY2024, HI Mobility made a net profit of RM45.1 million on a revenue of RM207.7 million.

Proceeds from the IPO will be used to expand charging infrastructure at its depots and select routes. The company will also set aside some of the funds raised to buy hardware and software for vehicle monitoring and driver management.

The rest will go towards meeting working capital requirements including hiring new drivers and to defray listing expenses.

Meanwhile, any money raised from the offer for sale of existing shares will accrue entirely to Han Weng who will cut his direct stake to 54%. He will also have a 6.5% indirect stake upon listing through his wife Bah Kim Lian who is also HI Mobility’s non-executive director.

Maybank is the IPO’s principal adviser, sole placement agent and sole underwriter.