KUALA LUMPUR: Solar photovoltaic system specialist, Solarvest Holdings Bhd plans to raise RM34.60mil from its initial public offering on the ACE Market of Bursa Malaysia Securities Bhd.
The company said on Monday it is offering 98.828 million new shares or 25.3% of its enlarged share capital at 35 sen a share.
Of the 98.828 million new shares, it said 19.53 million units would be offered to the public, another 19.53 million shares available for application by eligible directors, employees while 39.06 million shares would be placed out to approved Bumiputera investors and the remaining 20.70 million shares would be placed out.
Upon listing, Solarvest will have market capitalisation of RM136.70mill based on the issue price of 35 sen a share and its enlarged share capital of 390.6 million shares.
It said of the RM34.60mil from its IPO, of which RM19.20mil or 55.5% would be used for the group’s working capital for daily operations and future projects and RM3mil or 8.7% would be to expand its markets.
Solarvest plans to use some of the proceeds to purchase machinery and equipment as well as upgrade its information technology (IT) software and hardware (RM4mil or 11.5%).
The remaining IPO proceeds would be used to repay bank borrowings (RM5mil or 14.5%) and listing expenses (RM3.4mil or 9.8%).
Among those present at the launch of its prospectus were Minister of Energy, Science, Technology, Environment and Climate Change Yeo Bee Yin and chief strategy officer of SEDA Malaysia Dr Chen Wei-Nee.
Solarvest specialises in turnkey engineering, procurement, construction and commissioning (EPCC) services for solar photovoltaic (solar PV) systems. The Group has completed solar PV systems for large scale solar photovoltaic (LSSPV) plants as well as residential, commercial and industrial properties.
Solarvest group CEO Davis Chong Chun Shiong said the Malaysian solar sector was expanding due to interest in this renewable energy was picking up.
He said the take-up rates of the net energy metering programme and LSSPV programme were encouraging amongst commercial and industrial users as well as large investors.
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.
Solarvest is slated to be listed on the ACE Market on Nov 26. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
Solarvest is 45.0% owned by Chin Hin Group Bhd. Upon completion of the IPO, Chin Hin's shareholding will be 33.6%.
Also present at the launch of the prospectus were Solarvest chairman Datuk Che Halin Mohd Hashim; Senior Undersecretary (Sustainable Energy) of Ministry of Energy, Science, Technology, Environment and Climate Change Asdirhyme Abdul Rasib, managing director of corporate finance of M&A Securities Sdn Bhd Datuk Bill Tan; Chin Hin Group deputy group executive chairman Datuk Seri Chiau Beng Teik; Atlantic Blue Holdings Sdn Bhd director Tan Paw Boon; Davis Chong Chun Shiong; Yeo Bee Yin and Solarvest managing director Lim Chin Siu.
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