KUALA LUMPUR: ITMAX System Bhd's subsidiary, Southmax Sdn Bhd has secured a smart parking operator contract for 5,113 on-street parking spaces from the Tangkak District Council.
In its filing with Bursa Malaysia today, ITMAX said Southmax had on September 12, 2024 accepted the letter of appointment (LOA) by Tangkak District Council for the contract.
It said the contract will be for a period of 15 years commencing from September 1, 2024 to August 31, 2039, including simulation period without payment from July 1 2024 to August 30, 2024.
"Southmax and Tangkak District Council will execute and enter into a concession agreement in respect of the smart parking operation at Tangkak District Council," it said.
Meanwhile, ITMAX said the contract will result in revenue sharing at the rate of 70 per cent (Southmax) and 30 per cent (Tangkak District Council) for all parking collections including hourly parking, daily parking, monthly parking, season passes and temporary parking rental and parking compounds.
It said Southmax is responsible for the costs of the development, management, and maintenance of the smart parking system as well as the parking space equipment and signage.
"The LOA is expected to contribute positively towards the earnings and net assets per share of the company," it added.
ITMAX's share price was up 0.62 per cent to RM3.27 a share, giving it a market capitalisation of RM3.4 billion.