PETALING JAYA: Solarvest Holdings Bhd has entered into an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
It is scheduled to be listed by October 2019. M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
The solar photovoltaic system specialist said in a statement that the IPO exercise entails a public issue of 98.82 million new shares, representing 25.3% of its enlarged share capital.
Under the agreement, M&A Securities will underwrite a total of 39.06 million new shares made available for the Malaysian public and the group’s eligible directors, employees and persons who have contributed to the success of the group.
Some 20.70 million shares will be offered via private placement to selected investors, while the remaining 39.06 million shares will be placed out to identified Bumiputera investors approved by the Ministry of International Trade and Industry.
Solarvest specialises in turnkey engineering, procurement, construction and commissioning services for solar photovoltaic systems.
Solarvest CEO Davis Chong Chun Shiong said the listing exercise will boost its growth plans as the proceeds will be channeled to expedite the expansion activities in the domestic and international solar PV markets.
“Locally, we aim to strengthen our market footprint in large scale solar photovoltaic programmes especially in the third round of the bidding exercise. For the commercial and industrial market, we are expanding into the Southern region of Peninsular Malaysia, pursuing business opportunities in Negeri Sembilan, Malacca and Johor. Outside Malaysia, we plan to enter into new geographical markets, namely Vietnam and Taiwan.”
The group also plans to allocate part of the proceeds to enhance its technical capabilities, which includes acquiring new project machinery and equipment as well as upgrade its information technology software and hardware.
The remaining of the IPO proceeds will be used for working capital for its daily operation and future projects, repayment of bank borrowings and listing expenses.
