The solar PV system specialist opens at 60 sen, representing a 71% premium over its offer price of 35 sen
By ASILA JALIL / Pic By MUHD AMIN NAHARUL
SOLARVEST Holdings Bhd debuted strongly on the ACE Market of Bursa Malaysia yesterday, jumping 115.7% to close at 76 sen with 262.94 million shares traded.
The solar photovoltaic (PV) system specialist opened at 60 sen, representing a 71% premium over its offer price of 35 sen.
“Through this listing exercise, we have raised RM34.6 million to fund our expansion plans. This will enhance our financial capabilities to take on bigger projects,” Solarvest group MD Lim Chin Siu said at the listing ceremony in Kuala Lumpur yesterday.
A portion of the proceeds will be used to expand the group’s business locally and internationally.
Key expansion areas include the southern states such as Johor, Melaka and Negri Sembilan.
The group plans to venture into overseas markets like Vietnam and Taiwan, whereby the former is a strategic location aligned with the growth of the solar industry in South-East Asia, Solarvest CEO Davis Chong said.
“A lot of projects have started to pick up. It is easier for us to get local partners in the South-East Asia region. There are a lot of business transactions between Vietnam and Malaysia as well, so we have local partners and businesses that we can expand into there,” Chong said.
The company’s IPO involved a public issuance of 98.83 million new shares at an offer price of 35 sen each.
Of the RM34.6 million raised, RM19.2 million or 55.5% will be utilised for the group’s working capital to strengthen its daily operations and future projects.
RM4 million or 11.5% will be used to acquire new project machinery and equipment, as well as to upgrade the company’s information technology software and hardware.
RM3 million or 8.7% will be allocated for geographical expansion in the domestic and international markets, while the remaining IPO proceeds will be used for repayment of bank borrowings (RM5 million) and listing expenses (RM3.4 million).
About 96% of Solarvest’s total revenue comes from turnkey engineering, procurement, construction and commissioning services.
A further 1.4% comes from solar PV plants, and the remaining 0.3% from operations and maintenance works.
The group registered a revenue of RM139.96 million for the first half ended Sept 30, 2019, surpassing the previous financial year ended March 31, 2019, where revenue came in at RM112.2 million.
Solarvest is 45% owned by building material and services provider Chin Hin Group Bhd, which is listed on the Main Market of Bursa Malaysia.
Solarvest’s public portion of IPO shares was oversubscribed by 35 times.