Perak Transit to raise RM10 million as working capital through IAP

The IAP is a centralised multi-bank platform that enables investors to directly finance ventures of their choice according to their risk-return preferences.

Perak Transit managing director Datuk Seri Cheong Kong Fitt said the proceeds raised from the exercise would be utilised to purchase more lands, provide down payment for new buses, as well as upgrade the Amanjaya Terminal.

"We also plan to build a new bus terminal in Kampar. We aim to be listed on the ACE market on Bursa Malaysia this year, so we are now trying to get the working capital needed," he told reporters after the launch of the listing of Perak Transit on the IAP here today.

The ceremony was officiated by Deputy Finance Minister Datuk Chua Tee Yong.

The listing of Perak Transit on the new Syariah-compliant investment product platform was the inaugural fund raising exercise via the IAP.

Bank Muamalat Malaysia Bhd, as the investment manager, would provide financing facility for three years and this is expected to generate a return of 6.5 percent per annum to investors.

Bank Muamalat Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid said the bank was also fully underwriting the facility and would take up any shortfall not subscribed by investors.

"RAM Ratings Agency will evaluate and provide independent rating on the company," he said, adding that on this basis, investors would gain added confidence with assurance coming from the bank and the rating agency.

The bank has set a minimum investment at only RM10,000 to encourage all types of investors, especially retailers to invest, he said.