KUALA LUMPUR (April 3): Newly-listed HI Mobility Bhd (KL:HI) has secured a RM134.94 million contract to operate an intracity bus service in Johor Bahru, under the government’s Stage Bus Service Transformation programme.

The Johor-based bus operator's wholly owned subsidiary, Handal Indah Sdn Bhd, accepted the letter of acceptance from the Land Public Transport Agency (APAD), according to the company's exchange filing on Thursday.

The project is for a period of two years, HI Mobility said, adding that no renewable clause was stated in the acceptance letter.

“Handal Indah and APAD will enter into a definite agreement at a later date to formally govern the terms and conditions of the project,” the company said.

HI Mobility expects the project to contribute positively to its earnings and net assets during its tenure.

The company, which was listed on the Main Market of Bursa Malaysia on March 28, is the sole Malaysian bus operator providing cross-border services between Johor Bahru and Singapore. Operating under the Causeway Link brand, it operates a fleet of 683 buses, of which 53 are electric, covering 124 routes.

Shares of HI Mobility closed up five sen or 3.73% at RM1.39 on Thursday, with a market capitalisation of RM670 million.