KUALA LUMPUR (June 24): Go Hub Capital Bhd (KL:GOHUB) — an information technology (IT) services provider en route to listing on Bursa Malaysia’s ACE Market on July 3 — announced that the 20 million new shares offered to the Malaysian public have been oversubscribed by 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, which is equivalent to 26.8% of its enlarged issued share capital, via its initial public offering (IPO) exercise at 35 sen per share.

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

For the Bumiputera portion, 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.

Meanwhile, 12 million IPO shares reserved for eligible persons have also been fully subscribed.

Its placement agent confirmed that 75.18 million IPO shares by way of private placement to selected investors have also been fully placed out.

The notices of allotment will be posted to all successful applicants on July 1.

Go Hub is principally involved in providing enterprise IT services primarily to the transportation sector. It develops customised software systems and provides integration of hardware and software systems in the bus and rail segments.

Go Hub’s pro forma earnings per share (EPS ) was at 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 enlarged issued share capital of 400 million shares, which translates into a price-to-earnings multiple of 19.77 times, according to its IPO prospectus.

Excluding the one-off listing expenses of RM1.17 million, Go Hub’s net profit would have been RM8.26 million, which would translate into a price-to-earnings multiple of approximately 16.95 times, the company said.

It plans to utilise the proceeds raised from the IPO — amounting to RM37.5 million — for its expansion plan (RM24.7 million), repayment of bank borrowings (RM4 million), working capital (RM4.8 million) and listing expenses (RM4 million).

Of the allocation for its expansion plan, Go Hub has earmarked RM10.1 million for up to 49 new staff, RM6.5 million for equipment and tools, and RM3.7 million for a new office building as its new headquarters.

The remainder will be used to set up a new integrated centre, for design and development, and other expenses.

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