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.
