KUALA LUMPUR (May 19): Bus Cap Bhd said its initial public offering (IPO) has been oversubscribed by 72.2 times for the public portion, ahead of the group's ACE Market debut on June 3.
In a filing with Bursa Malaysia on Tuesday, the Ipoh-based bus manufacturer said it received applications for 1.404 billion shares for the 19.17 million new shares allocated to the Malaysian public.
The Bumiputera portion was oversubscribed by 66.68 times, while the other Malaysians portion recorded an oversubscription rate of 77.81 times.
The group added that the shares allocated to eligible persons were fully subscribed. Meanwhile, the private placement of both new and existing shares to selected investors was fully taken up.
Bus Cap, whose core operations are conducted through its wholly-owned subsidiary Sin Hock Leong Coach Works Sdn Bhd, builds buses primarily for the Malaysian market. The group expanded into Singapore in 2023.
Over the years, Bus Cap has built a presence in the domestic bus manufacturing industry, producing a range of single-deck, semi-high deck, high-deck and double-deck buses for stage, express, tour and shuttle services.
The IPO entails the issuance of 107.35 million new shares at 23 sen apiece and is expected to raise RM24.69 million.
Of the proceeds, 36.9% has been earmarked for the construction of a new factory and production lines, while another 20.4% will be used to acquire new machinery. A further 24.9% will be allocated for working capital, mainly for raw material purchases, with the balance set aside for listing expenses.
The IPO also includes an offer for sale that is expected to raise RM4.41 million, with proceeds accruing entirely to selling shareholder NCS Consolidated Holding Sdn Bhd — the private investment vehicle of managing director Ng Chai Sing and his family, which currently owns the company in full.
Following the listing, NCS’ shareholding in Bus Cap will be diluted to 67%.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.