KUALA LUMPUR (Oct 17): Sunview Group Bhd made its debut on the ACE Market of Bursa Malaysia on Monday (Oct 17) at 59.5 sen, a 105.1% premium to its initial public offering (IPO) issue price of 29 sen.
The stock pared its gains later to close its maiden trading day at 46 sen, still up 17 sen or 58.62%, valuing the group at RM66.43 million.
With a total trading volume of 127.57 million shares, the stock was also the most actively traded for the day.
Sunview is principally involved in engineering, procurement, construction, and commissioning (EPCC) as well as construction and installation services for solar photovoltaic (PV) facilities, solar power generation and supply, as well as associated services and products.
The public portion of its IPO was oversubscribed by 63.19 times.
The listing exercise successfully raised RM34.22 million via the issuance of 118 million new shares, of which RM20.1 million or 58.72% of the proceeds are earmarked to fund the group’s working capital requirements, while RM7 million or 20.46% will go towards repayment of bank borrowings.
Another RM1.86 million or 5.42% will be allocated towards capital expenditure, followed by RM1.67 million or 4.88% for business expansion, whereas the remaining RM3.6 million or 10.52% will be used to defray listing expenses.
The group's listing is the 30th on Bursa this year, and the 21st on the ACE Market.
Speaking at a press conference following the listing, Sunview chief executive officer Ong Hang Ping said the group aims to gradually strengthen its market share to more than 10% over the next few years, from 4% last year.
“We have a strong unbilled order book of RM558.34 million — as at Aug 30 — to provide earnings visibility until the financial year ending March 31, 2024 (FY2024).
“Additionally, there are still quotas and incentives from the Government, such as the net energy metering scheme, as well as the allocation and redistribution of a renewable energy quota of 1,200MW for solar resources.
“As such, we believe we can achieve higher milestones ahead,” he said.
Sunview has 35 ongoing EPCC projects for solar PV facilities, with a total contract value of RM685.29 million. The group has completed over 100 projects, with a total contract value of RM102.04 million.
For FY2022, Sunview’s revenue rose 129.08% to RM99.26 million from RM43.33 million for FY2021, with 75.73% contributed by the EPCC segment.
Looking ahead, Ong noted that the group is setting up a new office in Johor to address potential opportunities in EPCC of rooftop solar PV facilities and providing associated services, besides targeting commercial and industrial applications in the southern region of Peninsular Malaysia.
“At this moment, we have our headquarters in Petaling Jaya, and we do have a storage warehouse in Shah Alam. Yes, we are planning to open an office in Johor, with the aim of serving our southern region customers and clients better,” he said.
Ong said while the ongoing depreciation of the ringgit and the strengthening of the dollar had slightly affected Sunview's procurement of raw materials, the company is mitigating the negative impact by optimising costs through its designs as well as purchasing from various suppliers.