Perak transit to use RM20 mln from IPO proceeds for expansion

Ipoh-based bus company, Perak Transit Bhd, is allocating RM20 million out of its initial public offering (IPO) proceeds totalling RM36.75 million for expansion.

Chief Financial Officer, John Loh Kwang Yean, said part of the allocation would be used for the construction of a new integrated public transportation terminal in Kampar.

"For the Kampar terminal, we already have planning approval from the Perak state authority and is currently awaiting the building plan approval.

"Upon obtaining the building plan approval, we expect construction to take around 18 months to complete," he told reporters after the launch of the company's prospectus in conjunction with its IPO here, today.

According to the prospectus, the total cost of Kampar terminal is RM128.33 million and the group estimates to procure financing facilities of RM100 million to finance the construction.

The acquisition of 25 new express buses was expected to materialise by year-end, said Loh, adding the new buses would cost at an average of RM480,000 each.

Currently, the group owns 146 buses.

Perak Transit, which will be listed on the Ace market on Oct 6, currently operates the AmanJaya integrated public transportation terminal in Ipoh and provides public bus services.

The group aims to raise a total gross proceeds of RM36.75 million through the IPO.

Besides the expansion trail, the group is also allocating RM2.11 million for repayment of hire purchase facilities, working capital (RM10.48 million) and estimated listing expenses (RM4.16 million).

The group also aims to utilise the existing underdeveloped land at the AmanJaya Terminal to further develop it into a commercial and lifestyle hub.

Add to that, it intends to adopt new advertising and promotional channels such as digital platforms.

Loh said the group also planned to conduct a feasibility study to develop more integrated public transportation terminals in other states.

"At this stage, we want to focus on Kampar terminal first and its completion. When the opportunity comes, we will definitely look into that," he added. - BERNAMA