KUALA LUMPUR (May 6): Ipoh-based bus manufacturer Bus Cap Bhd aims to raise RM24.69 million for business expansion from its upcoming ACE Market initial public offering (IPO), priced at 23 sen per share.
At this price, the company is expected to have a market capitalisation of RM88.18 million upon listing, valuing the group at a price-to-earnings ratio of 8.98 times, based on its net profit of RM9.8 million for the financial year ended Dec 31, 2025. Applications for the IPO, now open, will close on May 15. The listing is scheduled for June 3.
WATCH: Bus Cap prices ACE Market IPO at 23 sen apiece
Bus Cap traces its origins to a 1968 partnership, which later evolved into its principal subsidiary, Sin Hock Leong Coach Works Sdn Bhd. Over the decades, the group established itself in the local market by manufacturing a diverse line-up of single-deck, semi-high deck, high-deck and double-deck buses for stage, express, tour and shuttle services. The group expanded its footprint into Singapore in 2023.
“We believe Bus Cap is entering the market at an important time. Public transport demand is recovering, fleet replacement continues, and operators are upgrading their buses,” said executive director Bernard Ng Chong Yan at the launch of the company's prospectus on Wednesday.
The IPO exercise comprises a public issue of 107.35 million new shares, alongside an offer for sale of 19.17 million existing shares.
Of the RM24.69 million to be raised from the public issue, 36.9% will go towards the construction of a new factory and production lines, while 20.4% will be used to purchase new machines. Another 24.9% will go towards working capital, mainly to buy raw materials, with the remainder set aside to defray listing-related expenses.
The offer for sale portion is expected to raise RM4.41 million, which will accrue entirely to its selling shareholder NCS Consolidated Holding Sdn Bhd. NCS is the private vehicle of managing director Ng Chai Sing and his family, which currently wholly owns Bus Cap. Post-IPO, NCS’ stake in the company will be diluted to 67%.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.