Sunview shines bright on ACE Market debut with doubling of IPO price to 59.5 sen

KUALA LUMPUR: Sunview Group Bhd made a strong debut on Bursa Malaysia’s ACE Market today at 59.5 sen, a 30.5 sen premium over its issue price of 29 sen with 8.82 million shares changing hands at the opening bell.

The renewable energy company, which is principally involved in engineering, procurement, construction, and commissioning (EPCC) as well as the construction and installation services for solar photovoltaic (PV) facilities, is expected to raise RM34.22 million through the listing exercise.

Executive director and chief executive officer Ong Hang Ping said RM20.10 million, or 58.72 per cent, of the proceeds will be used to fund the group’s working capital requirements, and RM7 million, or 20.46 per cent, will go towards repayment of bank borrowings.

Another RM1.86 million, or 5.42 per cent, has been allocated for capital expenditure and RM1.67 million, or 4.88 per cent, for business expansion.

The remaining RM3.60 million, or 10.52 per cent, will be used to defray listing expenses.

Ong said the company aims to increase its market share to more than 10 per cent next year from 4 per cent last year, on the back of a strong orderbook of RM558.34 million as of Aug 30, 2022, which will provide earnings visibility until 2024.

"There are still quotas and incentives from the government such as the net energy metering (NEM) scheme as well as an allocation and redistribution of a renewable energy (RE) quota of 1,200 megawatts for solar resources.

"So we strongly believe there is an additional market for us to achieve in the next few years,” he told a press conference after the company’s listing ceremony.

He said the company’s revenues are mainly from EPCC as well as large scale solar PV projects, adding that it has 35 ongoing solar PV-related EPCC projects with a total contract value of RM685.29 million.

Sunview is also planning to set up a new office in Johor to seek potential opportunities in EPCC and rooftop solar PV facilities. - Bernama