KUALA LUMPUR (June 3): Bus Cap Bhd (KL:BUSCAP) ended its first day of listing with a 37% gain and outperformed the broader market amid strong demand for a piece of the bus manufacturer.
The stock opened at 26 sen on the ACE Market versus its initial public offering (IPO) price of 23 sen per share. Bus Cap climbed to as high as 36.5 sen before settling at 31.5 sen at the closing bell after more than 124 million shares changed hands.
The Ipoh-based firm has a market capitalisation of RM121 million based on its last price after a 37% rally from its IPO price. The country’s benchmark FBM KLCI was down and an index tracking Bus Cap’s peers in the ACE Market was also lower.
Investors have snapped up shares of Bus Cap ahead of the listing with the IPO’s public tranche oversubscribed more than 72 times.
Bus Cap builds buses primarily for the Malaysian market and Singapore, producing a range of single-deck, semi-high deck, high-deck and double-deck buses for stage, express, tour and shuttle services.
The IPO raised RM24.69 million for Bus Cap and the company has earmarked 36.9% for the construction of a new factory and production lines. The company is also allocating 20.4% of the funds raised 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 raised another RM4.41 million for NCS Consolidated Holding Sdn Bhd — the private investment vehicle of managing director Ng Chai Sing and his family.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
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