Electric bus company Smart Auto Australia readies to list on the NSX
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Green transport and logistics company Smart Auto Australia (NSX:SAL) is getting ready to list its shares on the National Stock Exchange (NSX) in Sydney in a $4.2m capital raising.
Smart Auto Australia is positioning itself to become a market leader in green transport logistics and technology using hybrid electric buses for the commercial and rental markets.
The electric vehicle company’s IPO closes Tuesday and involves the issue of 42 million shares priced at 10 cents per share, and the offer is managed by India Ocean Corporate.
“A successful IPO will allow us to pursue our business development strategy of entering the electric commercial vehicle (e-CV) market in Australia, while leveraging its existing commercial offering and expertise,” Smart Auto Australia chairman, Michael Pixley, said.
Proceeds from the capital raising will go to advancing the company’s bus leasing business in countries including Australia, Indonesia, Papua New Guinea and New Zealand.
“We will be focusing on enabling Australian state governments to meet their targets for converting their existing diesel buses to electric,” said Pixley.
The government of NSW is planning to electrify Sydney’s bus fleet comprising 8,000 buses which currently run on diesel fuel, said Smart Auto Australia on its website.
Currently, the only commercial electric buses in Australia are serving Sydney and Brisbane airports, according to the company.
Smart Auto Australia is planning to set up “multiple offices, branches and showrooms, initially in Australia and then in the other target countries in due course”.
“At the same time, we will be targeting countries such as Papua New Guinea, New Zealand, Indonesia and the South Pacific Islands,” added Pixley.
The company was founded in Hong Kong where it developed its expertise in electric commercial vehicles and it has 10 years of experience in the city’s coaches market.
Lead manager for the IPO, India Ocean Group, said the capital raising for Smart Auto Australia was expected to be strongly supported by investors.
“Smart Auto Group enjoys a market leading position, an experienced and visionary management team and a highly scalable go-to market strategy providing numerous opportunities to generate earnings,” said India Ocean Group chief executive, James Notaras.