KUALA LUMPUR: Go Hub Capital Bhd, which debuted on the ACE Market this morning, jumped as much as 148 per cent to 87 sen a share from its initial public offering (IPO) price of 35 sen, in the first hour of trading.
As at 10.07am it was trading 138 per cent higher at 83.5 sen a share, with some 76.3 million shares traded.It was the most actively traded stock today.
According to the company, the IPO raised approximately RM37.51 million, of which RM24.71 million of the proceeds will be allocated for business expansion.
Another RM4 million will be used for the repayment of bank borrowings, RM4.8 million for working capital requirements and RM4 million will be reserved for payment of the listing expenses.
Go Hub executive director and chief executive officer Tan Cherng Thong stated that the company's main focus is on expanding its geographical presence, especially in the domestic market.
"This includes a significant project for installing a course at a bus terminal in Sabah, which has been operational since November 2023. We are also planning to implement our transportation IT solution at eight identified ferry terminals under Sabah Digitalization Initiative with full implementation expected by March 2025," he said at the virtual's press conference.
According to Tan, Go Hub plans to bolster its workforce to support our business expansion with a significant allocation of RM10.1 million from the IPO proceeds intended for this purpose.
"Our marketing effort will also be enhanced, including participation in international exhibitions, such as the Rail Solutions Asia and Innotrans with RM1 million allocated for these activities.
The acquisition of the Star central office tower and the setup of an integrated experience centre in Klang Valley are a part of our strategic initiative to provide a robust foundation for our growing operations," he noted.
Additionally, Tan is optimistic about the future prospects for IT solutions in Malaysia's transportation sector.
"Recent data showing consistent growth in real ridership among terminal passengers highlights the increasing demand for efficient transportation systems.Go Hub's strong performance evidenced by a compound annual growth rate (CAGR) of 55.75 per cent for recurring income, which highlights our capability to meet this demand of innovative and IT solutions. Our strategic focus on both recurring and non-recurring revenue segments position us well to capitalise on these growing trends in the transportation sector," said Tan.