KUALA LUMPUR (Nov 13): Johor bus company HI Mobility Bhd has filed for an initial public offering on the Main Market to expand its fleet with conventional and electric buses as well as install charging stations.

The company is controlled by Lim Han Weng, who is also the executive chairman of oil producer Yinson Holdings Bhd (KL:YINSON) and substantial shareholder of offshore support vessel firm Icon Offshore Bhd (KL:ICON).

The exact number of buses to be acquired has yet to be finalised, according to its draft prospectus, though the company said it has contractually committed to gradually deploy a total of 215 buses in Melaka and in the Klang Valley.

“We will continue to expand our vehicle fleet to support our business growth and to replace ageing buses,” HI Mobility said. “In addition, part of our group’s initiative is to transition our operations to be more environmentally friendly by expanding our fleet of electric buses.”

HI Mobility’s sole subsidiary is Handal Indah Sdn Bhd that plies the Johor–Singapore route under the Causeway Link brand as well as intracity bus service within Johor Bahru. The company currently operates a fleet of 616 buses, of which 53 are electric.

HI Mobility has confirmed orders for the purchase of 115 conventional and electric buses to be delivered progressively by March 2025. The total cost is estimated at RM58.7 million, of which RM19 million has been paid.

The company began two new contracts with government bodies to provide intracity bus services in Melaka and the Klang Valley this year. The contracts’ combined value is up to RM209.1 million, with revenue expected to be recognised from financial year ending Jan 31, 2025 (FY2025) till 2030.

To expand bus charging infrastructure

The proposed IPO comprises a public issue of 95 million new shares and an offer for sale of 35 million existing shares at a price to be determined later. All in all, the listing offers investors up to a 26% stake in the company that made net profit of RM45.1 million on revenue of RM207.7 million in FY2024.

Proceeds from the sale of new shares will also be used to expand charging infrastructure at its depots and select routes. The company will also set aside some of the funds raised to buy hardware and software for vehicle monitoring and driver management.

The rest will go towards meeting working capital requirements including hiring new drivers and to defray listing expenses.

Meanwhile, any money raised from the offer for sale of existing shares will accrue entirely to Lim who will cut his direct stake to 54%. He will also have a 6.5% indirect stake upon listing through his wife Bah Kim Lian who is also HI Mobility’s non-executive director.

Maybank Investment Bank is the IPO’s principal adviser, sole placement agent and sole underwriter.