Asiaray has obtained the exclusive rights to run ads on buses of The Kowloon Motor Bus Company (1933) (KMB), and The Long Win Bus Company (LWB).
Under the four-year agreement, Asiaray will handle both companies’ advertising spaces, which are on or in the exterior and interior areas of the buses, with extendable terms.
“The exposure and impact of bus advertising can be very big and effective as the advertisements can easily penetrate into people’s lives and reach a huge population of all ages and income levels across the city,” said Vincent Lam, founder, chairman and executive director of Asiaray.
“Leveraging Asiaray’s unique ‘space management’ approach, rich experience in public transport advertising and innovation, we believe our co-operation with KMB and LWB can maximise both companies’ strengths and grasp market opportunities in the public transport advertising market together.”
In 2018, KMB operated over 400 bus routes with a fleet of 4,112 buses carrying about one billion passengers during the year. Meanwhile, LWB now operates 34 bus routes with a fleet of about 279 buses.
Other than this agreement with KMB and LWB, Asiaray has also signed a subscription agreement with Ant Financial Services Group (Ant Financial), which will become a strategic shareholder of Asiaray.
According to the subscription agreement, Ant Financial has conditionally agreed to subscribe for a total of 35,675,676 shares at the price of HK$4.1 per share.
The net proceeds from the issue of the subscription shares is estimated at about HK$142.8 million. Upon the completion of the subscription, Ant Financial will hold about 7.5% of the enlarged total number of issued shares of Asiaray, and Asiaray will use the net proceeds as general working capital and for funding projects in the China and Singapore.
“Our new shareholder has great confidence in Asiaray’s business model, competitive strengths and prospects,” Lam said.
“Apart from strengthening our financial position for expanding our business, we also look forward to exploring any other co-operation possibilities with Ant Financial in fields that can generate synergies for our existing business, allowing us to create sustainable value for our shareholders.”