KUALA LUMPUR: Solarvest Holdings Bhd
’s shares slipped in the early trading session following its plan to raise RM254.1 million through a private placement of 10 per cent of its issued shares to independent third party investors.
The company said the proceeds will mainly be used to fund business expansion and strengthen the balance sheet.
RHB Investment Bank Bhd said in a note that post this placement, Solarvest’s share capital will increase to RM570 million from RM315.9 million, with its total issued shares rising to 932.4 million from 847.7 million.
On a proforma basis as at March 31, 2025, net assets per share will improve to 77 sen from 55 sen,
"The reduced leverage and strengthened equity base will enhance Solarvest’s financial flexibility to pursue larger-scale projects and further expand its renewable energy (RE) portfolio in our view,” it said.
The investment bank has factored in the effects of the private placement, resulting in higher financial year 2026-2028 earnings - by 4.6 per cent, 9.4 per cent, and nine per cent, mainly driven by lower interest costs.
"We also revise our borrowing cost assumptions at both project and holding company levels, and raise the target P/E multiple applied to associate-level investments and solar asset earnings,” it said.
RHB Investment Bank has maintained a Buy call, with a lower target price of RM3.49 from RM3.58 per share.
At 10.33, Solarvest shares fell eight sen on Bursa Malaysia to RM3.09 with 809,000 units changing hands. - Bernama
