PETALING JAYA: Solarvest Holdings Bhd
’s planned private placement is expected to strengthen its balance sheet and support its expansion into larger renewable energy (RE) projects. Analysts viewed the move as a strategic step to sustain growth momentum amid Malaysia’s accelerating energy transition.
RHB Research highlighted that post-placement, Solarvest’s share capital will increase to RM570mil from RM315.9mil, with total issued shares rising to 932.4 million from 847.7 million. On a pro forma basis as at March 31, net assets per share will improve to 77 sen from 55 sen, while gearing is expected to decline sharply to 0.38 times from 0.69 times. “The reduced leverage and strengthened equity base will enhance Solarvest’s financial flexibility to pursue larger-scale projects and further expand its RE portfolio,” the research house said. RHB Research maintained its “buy” recommendation but trimmed its target price for Solarvest to RM3.49 from RM3.58.
Apex Securities expressed optimism about the placement, noting that the exercise will fortify Solarvest’s financial standing while positioning it to capture upcoming large-scale solar opportunities. “We are positive on the proposed placement. While the issuance will strengthen Solarvest’s balance sheet through debt reduction, it will also result in an estimated 8.4% dilution to 2027 earnings per share (EPS) under the fully diluted scenario, after accounting for the conversion of 20.7 million outstanding warrants and 59.2 million employees’ share option scheme,” it said. “The placement also reflects management’s readiness to capitalise on upcoming utility-scale solar projects, which should reinforce Solarvest’s growth trajectory over the medium term,” it added.
Following the proposed exercise, Apex raised its 2026 solar order book assumption to RM2.5bil from RM2.4bil, citing enhanced financing capacity to secure larger utility-scale projects. “For 2027, we maintain our order book replenishment forecast at RM2.2bil, as most resources are likely to be channelled toward executing existing projects,” it said, adding that 2026 and 2027 earnings forecasts have been revised upward by 1.5% and 3.3%, respectively. Apex maintained its “buy” call with a higher target price of RM3.55 for Solarvest.
Phillip Capital Research, meanwhile, said while the enlarged share base will dilute Solarvest’s near-term EPS by 6–9%, the stronger balance sheet allow it to pursue additional engineering, procurement, construction and commissioning projects to bolster its RM1.2bil orderbook.” Post-placement, it expects Solarvest to be in a net cash position of RM195mil from 0.15 times net gearing. Phillip Capital maintained its “buy” rating and target price for Solarvest at RM3.40.
Solarvest has proposed to issue up to 84.7 million new shares, equivalent to 10% of its enlarged share capital, at a price to be determined later — not exceeding a 10% discount to the five-day volume-weighted average price prior to fixing. The placement, expected to be completed in the first half of 2026, could raise RM254.1 million based on an indicative issue price of RM3 per share. Proceeds will primarily fund solar project capital expenditure, debt repayment and working capital.
