KUALA LUMPUR (March 21): HI Mobility Bhd (KL:HI) announced that its initial public offering (IPO) of 10 million public shares, offered at a price of RM1.22 each, was oversubscribed by 6.57 times.

The Main Market-bound bus operator’s IPO involved a total of 130 million shares, comprising 95 million new shares and an offer for sale of 35 million shares.

HI Mobility received 4,010 applications for 75.74 million shares, worth RM92.4 million from the Malaysian public, reflecting an overall oversubscription rate of 6.57 times against the 10 million shares on offer, the company said in a statement on Friday.

For the allocation of five million shares reserved for Bumiputera balloting, it received 1,519 applications for 20.14 million shares, resulting in an oversubscription rate of 3.03 times. For the remaining public portion, it received 2,491 applications for 55.6 million shares, equating to an oversubscription rate of 10.12 times.

Additionally, the five million shares allocated to eligible employees and individuals who had contributed to the company’s success were also fully subscribed, the statement added.

The placement agents confirmed that they had successfully placed out a total of 80 million shares, of which 32.5 million shares were offered to institutional and selected investors.

Based on the 95 million new shares issued, HI Mobility is expected to raise approximately RM115.9 million from the IPO. The proceeds will be used for bus fleet expansion and electrification, expansion of electric vehicle charging infrastructure, as well as technological enhancement.

HI Mobility is scheduled to be listed on the Main Market on March 28, with an estimated market capitalisation of RM610 million.

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HI Mobility launches Main Market IPO at RM1.22 per share to raise RM116m