From left: Go Hub Capital Bhd chief business development officer Eng Chee Seng, independent non-executive director Alwizah Al-Yafii Ahmad Kamal, independent non-executive chairman Zulkifly Zakaria, chief technology officer Hong Boon Huon, executive director/CEO Tan Cherng Thong, executive director/finance director Lee Li Yee, independent non-executive director Poh Zuan Yin and independent non-executive director Lee Yew Weng.
KUALA LUMPUR: Go Hub Capital Bhd made a strong debut on the ACE Market of Bursa Malaysia today as its share price surged 140%.
The transportation information technology solutions provider, jumped 140%, or 49 sen to 84 sen at 9.46 am, making it the top gainer on Bursa Malaysia. It is also the most actively traded counter with 75.5 million shares done.
Go Hub raised approximately RM37.51mil from its initial public offering. The company stated that RM24.71mil of the proceeds will be earmarked for business expansion, RM4mil for the repayment of bank borrowings, RM4.80mil for working capital requirements, and RM4mil reserved for listing expenses.
“The positive investor response to our IPO underscores the market's belief in our capabilities and growth potential. We look forward to leveraging this momentum to drive Go Hub’s growth and to solidify our position as a key IT solutions provider in the public transportation sector,” independent non-executive chairman Zulkifly Zakaria said in a statement.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for Go Hub.
TA Securities Holdings Bhd has assigned a fair value of 55 sen to Go Hub. The valuation represents a 57.1% increase from its IPO price of 35 sen.
TA Securities expressed optimism about Go Hub’s growth prospects, citing the government's ongoing efforts to advance digitalisation, which are expected to enhance Malaysia’s public transportation infrastructure and systems.
"We estimate Go Hub will achieve earnings growth of 19.3%, 33.3%, and 21.7%, reaching RM9.7mil, RM12.9mil, and RM15.7mil for the financial years 2024 (FY24), FY25 and FY26, respectively, supported by its unbilled order book of RM35.4mil as of May 10, 2024.
"A better outlook for the public transportation sector is also expected, with the domestic market remaining the primary revenue generator," TA Securities said.
