Northern Solar focused on enhancing financial resources

PETALING JAYA: Solar energy provider Northern Solar Holdings Bhd is gearing up for its initial public offering (IPO) on the ACE Market, with the aim of bolstering its financial base for expansive growth.

According to its prospectus exposure, the IPO comprises a public issue of 67.25 million new shares and an offer-for-sale of 35.6 million existing shares, at a price to be determined later.

This issuance represents a 26% stake in Northern Solar. To scale up operations and secure larger contracts, Northern Solar is set on enhancing its financial resources.

“To expand our business and secure larger contracts, we must increase our available financial resources to satisfy the working capital required to undertake the contracts,” Northern Solar noted in its prospectus exposure.

This capital will primarily support the acquisition of new equipment and the recruitment of 20 engineers and staff members. Northern Solar specialises in the engineering, procurement, construction, and commissioning of photovoltaic (PV) systems. It owns and operates 10 solar PV systems.

Additionally, it holds a 20% stake in Engtex Energy Sdn Bhd, which manages four more PV systems.

For its latest financial year ended March 31, 2024 (FY24), Northern Solar saw its net profit grow by 65% to RM10.09mil compared to RM6.12mil in FY23. Revenue grew by almost 75% to RM77.97mil from RM44.67mil in FY23.

Northern Solar has earmarked its IPO proceeds to bolster working capital, enabling the expansion of its solar PV systems business and to repay outstanding bank borrowings.