Go Hub records 78.7 times oversubscription for 20 million shares offered in IPO

KUALA LUMPUR (June 24): Go Hub Capital Bhd (KL:GOHUB) — an information technology (IT) services provider en route to a listing on Bursa Malaysia’s ACE Market on July 3 — announced that the 20 million new shares offered to the Malaysian public were oversubscribed 78.71 times.

In a statement, Go Hub said it received a total of 20,452 applications for 1.59 billion shares, worth RM557.94 million, from the Malaysian public.

Go Hub offered 107.18 million shares, equivalent to 26.8% of its enlarged share capital, through its initial public offering (IPO) exercise at 35 sen per share.

The company has allocated 20 million shares to the Malaysian public, including 10 million to Bumiputera investors and 75.18 million shares for private placements.

For the Bumiputera part, Go Hub received 10,835 applications for 656.49 million shares, representing an oversubscription rate of 64.65 times. For the remaining public portion, a total of 9,617 applications for 937.61 million IPO shares were received, representing an oversubscription rate of 92.76 times.

At the same time, 12 million IPO shares reserved for eligible persons have also been fully subscribed.

Its placement agent confirmed that 75.18 million shares floated through private placement to selected investors have also been fully placed.

Award notices will be posted to all successful applicants on July 1.

Go Hub is primarily involved in the provision of enterprise IT services, primarily to the transportation sector. It develops custom software systems and provides hardware and software system integration in the bus and rail segments.

Go Hub’s pro forma earnings per share (EPS) was 1.77 sen for the financial year ended Dec 31, 2023 (FY2023), based on its profit after tax attributable to owners of RM7.09 million and an enlarged issued share capital of 400 million shares. , which translates to a price-to-earnings multiple of 19.77 times, according to its IPO prospectus.

Excluding one-off listing expenses of RM1.17 million, Go Hub’s net profit would have been RM8.26 million, translating to a price-to-earnings multiple of about 16.95 times, it said the society.

It plans to use the proceeds from the IPO – amounting to RM37.5 million – for its expansion plan (RM24.7 million), repayment of bank loans (RM4 million ), its working capital (RM4.8 million) and listing fees (RM4 million).

Of the allocation for its expansion plan, Go Hub has set aside RM10.1 million for up to 49 new employees, RM6.5 million for equipment and tools and RM3.7 million for a new office building that will serve as the new headquarters.

The remainder will be used to create a new integrated center, for design and development, and other expenses.

UOB Kay Hian Securities is the lead advisor, sponsor, underwriter and placement agent for the listing exercise.

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Go Hub unveils IPO prospectus to raise RM37.5 million on ACE Market