HI Mobility's IPO success indicates booming travel between Singapore and Malaysia
- Shares of HI Mobility, a major bus operator controlled by Lim Han Weng, surged during its IPO amidst optimistic predictions of increasing passenger traffic.
- The company's revenue rose significantly due to its operations across the busy Singapore-Malaysia causeway, where over 300,000 people cross daily.
- The IPO's success positions HI Mobility for future growth, enabling further investments in fleet expansion and electric bus initiatives.
In Malaysia, shares of bus operator HI Mobility, under the control of tycoon Lim Han Weng, surged following its initial public offering (IPO), reflecting a positive outlook for passenger traffic along the busy Singapore-Malaysia causeway. This significant land border experiences daily traffic exceeding 300,000 people, and HI Mobility's operations are crucial in facilitating this movement. The company's Causeway Link service stands as one of the largest bus operators on this border, which benefits from a newly established economic zone designed to boost business activities in the region, thus stimulating travel demand. The IPO saw HI Mobility raise 115.9 million ringgit, equivalent to approximately $26.3 million, with 95 million shares offered at a price of 1.22 ringgit each. On its debut, the stock price climbed to 1.33 ringgit, representing a 9% increase, showcasing investor confidence in the company's potential amid the growing demand for cross-border transportation. The surge in revenue for HI Mobility, which jumped 73% to 207.7 million ringgit in 2024, signifies strong market performance, with nearly half of its earnings stemming from operations in Singapore. The company's transportation fleet comprises 155 buses, which make up about 25% of its total fleet, primarily serving the vital transportation route at the causeway. HI Mobility also extends its services to Kuala Lumpur and the states of Malacca and Selangor. Looking forward, the firm's CEO Lim Chern Chuen acknowledged the role of the new economic policies in fostering travel demand and further business expansion. The proceeds from the IPO are earmarked for an ambitious fleet expansion program, which includes the acquisition of 55 new buses, 10 of which are set to be electric, alongside efforts to develop charging infrastructure for electric vehicles. The substantial backing from Lim Han Weng and his wife, Bah Kim Lian, positions HI Mobility for greater heights, as they continue a legacy that began with their founding of one of the world's leading oil and gas services companies before diversifying into renewable energy initiatives in various international markets.