KUALA LUMPUR (Jan 2): Transport IT solution provider Go Hub Capital Bhd (KL:GOHUB) has proposed to raise up to RM21.2 million via a private placement of 10% of its enlarged share base to fund four new projects.

The exercise will involve the issuance of up to 40 million shares to independent third parties to be identified later, with the issue price to be fixed at a later date, according to a filing with Bursa Malaysia on Friday.

The estimated proceeds are based on an illustrative issue price of 53 sen, representing an 8.6% discount to Go Hub shares’ five-day volume-weighted average price of 58.01 sen up to Dec 24.

Go Hub is currently the technology partner behind Keretapi Tanah Melayu Bhd’s (KTMB) centralised ticketing system and automated fare collection.

The company said RM15 million will fund new railway and terminal projects, RM6 million will go to working capital, while the rest will cover related expenses.

This includes improving ticketing systems at eight southern rail stations and across the wider rail network with new ticket vending machines, access gates and point-of-sale (POS) terminals.

Funds will also enhance operations at Terminal Bersepadu Selatan (TBS) by upgrading facilities to improve passenger convenience and efficiency. In addition, a taxi queue management system will be implemented, featuring e-hailing integration, smart barrier gates, better traffic flow, improved taxi holding areas and upgraded passenger lounges to enhance overall service quality.

Explaining the rationale, Go Hub said the private placement provides a flexible and cost-effective way to raise funds, improve liquidity and financial flexibility, reduce gearing levels, avoid interest expenses associated with borrowings and strengthen the group’s capital base.

Currently, Go Hub is controlled by chief executive officer Tan Cherng Thong and his spouse Lee Li Yee, who hold a 53.5% stake via investment vehicle Go Hub Sdn Bhd. Following the exercise, the duo’s shareholding is expected to be diluted to 48.6%. Tan also holds a 1.78% direct stake, which would be reduced to 1.62% post-exercise.

Shares in Go Hub ended half a sen, or 0.8%, lower at 59 sen on Friday, giving the company a market capitalisation of RM236 million.