Go Hub Capital Bhd, which provides transportation IT solutions, has been trending upwards in the past 3 weeks since its debut on Bursa Malaysia on July 3. It was in fact a tremendous run for the company whereby it reached an all-time high of RM1.25 on July 26.

On its listing day, Go Hub surged 171.43% to close at 95 sen versus its initial public offering price (IPO) of 35 sen per share. The stock opened at 80 sen and climbed to as high as 99 sen on its maiden trading day.

The company plans to utilise the proceeds raised from the IPO 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.

What’s interesting about Go Hub is its effort to reduce dependency on government projects to include the private sectors as well.

The company said it is bidding for six projects totalling RM35.64 million from the public and private sectors to provide IT solutions to the public transport industry. It added that this move will not only mitigate its dependency on a single client.

Go Hub already has a strong market presence serving a significant portion of the bus terminals in Peninsular Malaysia. The company is currently dependent on its major customer, Keretapi Tanah Melayu Bhd (KTMB).

It has been providing transportation IT solutions to the national rail operator since 2019, with contracts contributing about 69% of Go Hub’s revenue in FY2023.

Apart from that, it is currently working with the Sabah Port Authority to implement transportation IT solutions at state ferry terminals. The Sabah Port Authority aims to fully implement the Go Hub solution by March 2025.

Surely, there is plenty of room for Go Hub to grow given its dominant position in the space of transportation IT solutions, giving the counter higher potential upside.