KUALA LUMPUR: Solarvest Holdings Bhd aims to raise RM34.6 million from its initial public offering (IPO) on Bursa Malaysia’s ACE Market.
Solarvest is in the business of engineering, procurement, construction and commissioning (EPCC) services of solar photovoltaic (PV) systems.
Solarvest chief executive officer Davis Chong Chun Shiong said it would raise RM34.6 million from the IPO.
He said the Malaysian solar sector was experiencing an expansionary phase with increasing levels of interest among the public to harness sunlight for their own electricity usage.
“The take-up rates of the net energy metering programme and LSSPV programme have seen encouraging growth among commercial and industrial users as well as large investors,” Chong said after Minister of Energy, Science, Technology, Environment and Climate Change Yeo Bee Yin launched Solarvest’s prospectus here today.
Out of the RM34.6 million proceeds to be raised from the IPO, RM19.2 million or 55.5 per cent will go to the group’s working capital, RM3 million or 8.7 per cent for its geographical expansion in the domestic and international markets, RM4 million or 11.5 per cent to enhance technical capabilities and RM5 million or 14.5 per cent to repay bank borrowings.
Locally, Chong said Solarvest will spread its footprint Melaka, Negeri Sembilan and Johor. Beyond Malaysia, it plans to strike parnerships with local companies in Vietnam and Taiwan.
Solarvest’s IPO entails a public issue of 98.83 million new shares, representing 25.3 per cent of its enlarged share capital at 35 sen per share.
Of the public issue, 19.53 million shares are available for the Malaysian public; 19.53 million shares for eligible directors, employees and persons who have contributed to the success of Solarvest, 39.06 million shares by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry and 20.7 million shares by way of private placement to selected investors.
Solarvest is slated to be listed on November 26 with a market capitalisation of RM136.7 million.
Solarvest is 45 per cent-controlled by Main Market-listed Chin Hin Group Bhd, which will pare down its shareholding in Solarvest to 33.6 per cent upon listing.
Solarvest has completed solar PV systems for large scale solar photovoltaic plants (LSSPV) as well as residential, commercial and industrial properties.
Chong said the outlook of the solar industry has the strong support from local authorities via their policies and programmes.