Chong (right) and other directors of Solarvest, Chin Hin and M&A Securities pose for a photo yesterday.
KUCHING: Solar photovoltaic (PV) system specialist, Solarvest Holdings Bhd (Solarvest) has garnered positive response for its initial public offering (IPO), which has been oversubscribed by 35 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad.
Solarvest specialises in turnkey engineering, procurement, construction and commissioning (EPCC) services for solar photovoltaic systems. The Group also provides operations and maintenance services of solar PV systems.
Its track record includes solar PV systems projects for Large Scale Solar Photovoltaic (LSSPV) plants as well as residential, commercial and industrial properties.
Group chief executive officer of Solarvest, Davis Chong Chun Shiong said, “The overwhelming interest from the Malaysian public is an encouraging affirmation of our business, growth and the journey we aim to embark on. There are huge untapped opportunities in the industry, and we believe that Solarvest is well positioned to benefit from the rising demand for clean energy.”
“Having that in mind, we will be channeling part of the proceeds raised from the IPO to strengthen our competitive edge, which includes geographical diversification in both the domestic and international market as well as adopting new technologies in our offerings.
“Looking beyond, we intend to grow our recurring income portfolio by expanding downstream, while we continue to strengthen our value proposition as a turnkey EPCC for the LSSPV segment,” he added.
The group’s listing exercise entails the issuance of 98,828,000 new shares at an issue price of RM0.35 per share, raising approximately RM34.6 million in IPO proceeds.
The group received a total of 10,205 applications for 708,318,000 new shares with a value of RM247.91 million from the Malaysian Public for the 19,531,000 new shares, representing an oversubscription rate of 35 times.
Of the total proceeds raised, RM19.2 million or 55.5 per cent will be utilised for the group’s working capital for daily operations and future projects. RM3 million or 8.7 per cent will be for its geographical expansion.
Locally, the Group will spread its market presence in the Southern region of Peninsular Malaysia, pursuing business opportunities in Negeri Sembilan, Melaka and Johor. Beyond Malaysia, Solarvest plans to enter into new markets, namely Vietnam and Taiwan.
Additionally, some of the proceeds were allocated to acquire new project machinery and equipment as well as to upgrade its information technology (IT) software and hardware. The remaining of the IPO proceeds will be used for repayment of bank borrowings and listing expenses.
Solarvest is slated to be listed on the ACE Market of Bursa Securities on Tuesday, 26 November 2019. Upon listing on the ACE Market, Solarvest will have market capitalisation of RM136.7 million based on the issue price of RM0.35 and its enlarged share capital of 390.6 million shares.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
Solarvest is 45 per cent owned by Main Market listed, Chin Hin Group Berhad (Chin Hin). Upon completion of the IPO, Chin Hin’s shareholding will be approximately 33.6 per cent.