The information technology (IT) services provider for the transportation sector started trading at 80 sen per share with a volume of 16.09 million shares, surpassing its IPO price of 35 sen.
It later peaked at 85 sen on Bursa Malaysia. By 11.55am, it rose to 89 sen with 10.56 million shares changing hands.
The company is expected to achieve a market capitalisation of RM140 million upon listing, valuing it at 19.77 times its price-earnings ratio, calculated from its earnings per share of 1.77 sen for the financial year ended December 31, 2023 (FY2023).
In a separate note, Go Hub said it plans to expand its geographical footprint in the domestic market following its listing today.
Executive director and CEO Tan Cherng Thong said the company is currently involved in a key project in Sabah.
“Our primary focus includes the expansion of our geographical footprint, particularly in the domestic market, which involves installing a terminal operating system (TOS) at a bus terminal in Sabah which has been operational since November 2023.
“We are also planning to implement transportation IT solutions at eight identified ferry terminals under Sabah’s digitalisation initiative, with full implementation expected by March 2025,” he said in a virtual press conference today.
The company said the listing is expected to raise about RM37.51 million, with RM24.71 million for business expansion, RM4 million to repay bank borrowings, RM4.8 million for working capital, and RM4 million for listing expenses.
Tan said RM10.10 million will be used to bolster the company’s workforce, which is part of its business expansion.
“Marketing efforts will be enhanced to include participation in international exhibitions such as the Rail Solutions Asia and InnoTrans, with RM1 million allocated for these activities,” he said.
He added that the acquisition of the Star Central office tower and a newly integrated centre that will be set up in the Klang Valley are part of the company’s strategic initiatives to grow its operations.
On prospects, Tan said the company is confident of IT solutions in Malaysia’s transportation sector due to the consistent growth in rail ridership and terminal passengers that underscores the hike in demand for Go Hub’s transportation system.
“Our strong performance is evidenced by a compound annual growth rate of 55.75% in recurring income, highlighting our capability to meet innovative and effective IT solutions,” he said.
As at 2pm, Go Hub’s share price was up by 61.5 sen or 175.71% at 96.5 sen, giving the group a market capitalisation of RM386 million.