PETALING JAYA: RHB Investment Bank Bhd has assigned Bus Cap Bhd a fair value of 38 sen, which is 66% higher than the company’s IPO price of 23 sen per share.
In a note titled “Bursa’s only listed bus manufacturing player”RHB said the bus cap is set to benefit from increased bus demand driven by tourism recovery, increasing intercity and cross-border travel and recurring fleet replacement demand under the 10-year lifespan rule for express buses.
The research house said Malaysia’s new bus registrations are expected to rise from 276 units during the pandemic to 1,355 units in 2025, surpassing pre-pandemic levels.
RHB also highlighted Bus Cap’s expanded production capacity of approximately 168 buses annually and said its planned new factory and semi-automated fabrication line is expected to improve efficiency and reduce production lead times by FY2029.
Bus Cap reported revenue of RM88.1 million and net profit of RM9.7 million for FY2025. RHB estimates revenue to grow to RM142.9 million and net profit to RM15.9 million by FY2028.
The IPO involves a public issue of 107.3 million new shares and an offer for sale of 19.2 million existing shares, with the proceeds primarily earmarked for a new factory, machinery purchases and working capital.
Applications close on May 15, while the group is scheduled to list on the ACE Market on June 3, 2026.
