Solarvest IPO oversubscribed 35 times
PETALING JAYA: Solar photovoltaic system specialist Solarvest Holdings Bhd’s initial public offering (IPO) has been oversubscribed 35 times ahead of its listing on the Ace Market of Bursa Malaysia on Nov 26.
In a statement yesterday, the company said its listing exercise entails the issuance of 98.83 million new shares at an issue price of 35 sen per share, raising approximately Rm34.6mil in IPO proceeds.
Solarvest said it received a total of 10,205 applications for 708.32 million new shares with a value of Rm247.91mil from the Malaysian public for the 19.53 million new shares, representing an oversubscription rate of 35 times.
“As for the bumiputera portion, a total of 3,886 applications for 210.94 million new shares were received, translating to an oversubscription rate of 20 times.
“For the remaining public portion, a total of 6,319 applications for 497.38 million new shares were received, representing an oversubscription rate of 50 times.”
Solarvest said the 19.53 million new shares available for eligible directors, employees and persons who have contributed to the success of the group have all been fully subscribed.
“The private placement of 59.77 million shares available to selected investors as well as bumiputera investors approved by the International Trade and Industry Ministry have also been fully placed out.
Of the total proceeds raised, Rm19.2mil or 55.5% will be utilised for the group’s working capital for daily operations and future projects.
An allocation of Rm3mil, or 8.7%, will be for its geographical expansion.
Locally, the group will spread its market presence in the southern region of Peninsular Malaysia, pursuing business opportunities in Negri Sembilan, Melaka and Johor.
Beyond Malaysia, Solarvest plans to enter into new markets, namely Vietnam and Taiwan.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
Solarvest is 45%-owned by Main Marketlisted Chin Hin Group Bhd.
Upon completion of the IPO, Chin Hin’s shareholding will be approximately 33.6%.