PETALING JAYA: Solarvest Holdings Bhd is looking to raise RM34.6 million from its listing on the ACE Market of Bursa Malaysia.
Solarvest specialises in turnkey engineering, procurement, construction and commissioning (EPCC) services for solar photovoltaic (solar PV) systems.
Of the proceeds raised, RM19.2 million or 55.5% will be utilised for the group’s working capital for daily operations and future projects; RM3 million or 8.7% for its geographical expansion in the domestic and international markets; RM4 million or 11.5% to enhance technical capabilities; and RM5 million or 14.5% for repayment of bank borrowings.
Locally, the group will spread its footprint in the Southern region of Peninsular Malaysia. Beyond Malaysia, it is planning to enter into Vietnam and Taiwan markets.
Solarvest’s IPO entails a public issue of 98.83 million new shares, representing 25.3% of its enlarged share capital at an issue price of 35 sen per share. Of the public issue, 19.53 milion shares will be made 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, 2019 with a market capitalisation of RM136.7 million. It is 45% owned by Main Market-listed Chin Hin Group Bhd, which will pare down its shareholding in Solarvest to 33.6% upon listing.
Solarvest has completed solar PV systems for large scale solar photovoltaic plants (LSSPV) as well as residential, commercial and industrial properties.
Its CEO Davis Chong Chun Shiong said the Malaysian solar sector is experiencing an expansionary phase with increasing levels of interest in solar power.
“The take-up rates of the net energy metering programme and LSSPV programme have seen encouraging growth amongst commercial and industrial users as well as large investors.”
He said the outlook of the solar industry is further enhanced by the strong support from the local government, whereby various policies and programmes were implemented to accelerate investment shifts towards renewable energy.