Hi Mobility makes modest 9% gain on Main Market debut

Monday 31 Mar 2025

28 Mar 2025, 09:33 amUpdated - 06:57 pm

(From left) HI Mobility Bhd independent non-executive director Faridah Iskandar, alternate director Lim Chern Fang, independent non-executive chairman Raja Datuk Zaharaton Raja Zainal Abidin, executive director and chief executive officer Lim Chern Chuen, non-independent non-executive director Bah Kim Lian, and independent non-executive director Ahmed Fairuz Abdul Aziz at the company’s Main Market listing ceremony on Friday. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (March 28): Bus operator HI Mobility Bhd (KL:HI) kicked off its maiden trading day on the Main Market of Bursa Malaysia with a modest gain of 9.02% on Friday, snapping a series of debut flops on Bursa Malaysia.

HI Mobility opened at RM1.27 per share, but dipped briefly below its initial public offering (IPO) price of RM1.22 shortly after that, before climbing in the later part of the day to close at its intra-day high of RM1.33. A total of 40.18 million shares changed hands, giving the Johor-based company a market capitalisation of RM655 million at the closing price.

Of the 14 companies listed on Bursa Malaysia so far this year, HI Mobility was among eight that ended their debut sessions above their IPO price. It is also the sole company that avoided closing at a discount this month, out of the six new companies that made their listing debuts across the Main Market and ACE Market. The others saw declines ranging from 8% to 22% on their first trading day.

“As we transition into a public-listed entity, we are committed to creating greater value for all our stakeholders.” HI Mobility chief executive officer Lim Chern Chuen said at the company’s listing ceremony.

The IPO raised RM115.9 million for HI Mobility with the retail tranche oversubscribed more than six times, and proceeds from the IPO will be used for fleet expansion, electrification, the development of electric vehicle charging infrastructure, and technological enhancements.

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

The company is the sole Malaysian bus operator providing cross-border services between Johor Bahru and Singapore, facilitating travel through one of the world's busiest land border crossings.

Operating under the Causeway Link brand, Hi Mobility currently operates a fleet of 683 buses, of which 53 are electric, covering 124 routes.

The IPO also raised RM42.7 million for its selling shareholder Lim Han Weng, who is also Chern Chuen’s father and the executive chairman of oil-and-gas services firm Yinson Holdings Bhd (KL:YINSON).

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