Sunview to expand solar engineering business

PETALING JAYA: Sunview Bhd, which is slated to list on the ACE market on Oct 17, plans to use Rm20.1mil or 58.7% of its listing proceeds for its working capital requirements as the company looks to expand its solarbased engineering business in the country.

Sunview, which is an engineering, procurement, construction and commissioning (EPCC) specialist for solar photovoltaic (PV) projects, is set to raise Rm34.2mil through its initial public offering via issuance of 118 million new shares at an offer price of 29 sen per share.

Upon listing, Sunview will have a market capitalisation of Rm135.72mil, based on its enlarged share capital of 468 million shares.

“Despite the group only being in existence for less than 10 years, our growth story is a testament of the hard work and effort we poured into the company.”

“In a short span of time, we have grown leaps and bounds.

“From being a small EPCC contractor, mainly for rooftop solar photovoltaic facilities, we are today an integrated renewable energy player specialised in EPCC and construction and installation services for solar PV facilities, provision of solar power generation and supply, as well as associated services and products,” Sunview chief executive officer Ong Hang Ping said at the launch of its prospectus in Kuala Lumpur yesterday.

Ong added the group now has projects across Malaysia amounting to over Rm700mil.

“To date, we own 18 solar PV facilities across Malaysia with a total installed capacity of 7.74 megawatt peak,” Ong said.

The group has plans to expand its solar power generation and supply business to build a strong recurring income stream.

“Moreover, we are looking to expand into EPCC of biogas plants and complementary products,” Ong added.

Sunview intends to use Rm1.9mil or 5.4% of proceeds raised for capital expenditure and Rm1.7mil 4.9% on business expansion.

“Our group’s working capital requirements are expected to increase in tandem with the expected growth in our business,” Sunview stated in its prospectus.

Under its business expansion plan, the group intends to use the proceeds to set up new offices in Johor and establish new complementary products for solar PV future projects and raise its marketing activities.

Sunview plans to purchase mechanical equipment including vehicles for project sites, information technology related systems and electrical equipment to support its existing and new projects.

The Selangor-based EPCC company will use Rm7mil or 20.5% of the proceeds to repay bank borrowings, which would bring the group’s gearing ratio down to 0.6 times from a gearing ratio of 1.04 times as at July 31, 2022.

Of the 118 million new shares, 23.6 million shares or 5.04% of its enlarged share capital will be made available to the Malaysian public, while nine million shares will be offered to its directors, employees and person who has contributed to the success of the group.

Another 85.4 million shares or 18.25% of the enlarged issued share capital, will be sold via private placement to selected investors.

Sunview’s revenue is mostly contributed by its EPCC projects and has grown at a compound annual growth rate of 105% from Rm5.7mil in its financial year ending March 31, 2019 (FY19) to Rm99.3mil in FY22.

Its profit after tax (PAT) also grew steadily to Rm13.4mil in FY22 from net loss of RM708,000 in FY19.

The Russia-ukraine crisis has hit margins with Sunview’s PAT margins falling to about 9% in FY22 compared to 13.4% in the previous financial year.