KUALA LUMPUR (Dec 31): JS Solar Holding Bhd, which provides engineering, procurement, construction and commissioning (EPCC) services and solar photovoltaic (PV) systems, on Tuesday filed for an initial public offering (IPO) on the ACE Market to raise funds to buy a new office and expand its business.
The proposed IPO involves a public issue of 78 million new shares and an offer for sale of 19.5 million existing shares, collectively representing 26% of its enlarged issued share capital, at a price to be determined, according to its draft prospectus filed with Bursa Malaysia.
JS Solar was established in 2018 to leverage the potential of the solar PV renewable energy industry. The company is involved in solar PV projects by providing operation and maintenance services.
As at Nov 18, the company has participated in solar PV system projects with a cumulative capacity of 376.63 megawatt peak (MWp) across residential, commercial and industrial properties, and utility-scale solar PV systems.
In January this year, it was reported that a consortium comprising JS Solar and Samaiden Group Bhd’s (KL:SAMAIDEN) unit bagged a RM100 million contract to build a 50MW solar power plant (first phase) in Kulim Hi-Tech Park, Kedah.
“We have successfully installed a floating solar PV system which strengthens our capabilities in this field. Our track record is reinforced by our registrations with the relevant authorities, which enable us to undertake solar PV system projects of varying scale,” JS Solar's prospectus read.
For its financial year ended March 31, 2024, the company made a net profit of RM6.4 million on the back of RM140.39 million in revenue. Gross profit margin was 10.92% while profit before tax margin was 6.58%.
Under the proposed public issue, the company has set aside 16.25 million new shares for the public, 19.5 million shares for eligible persons and 42.25 million shares to selected investors through private placement.
Proceeds from the public issue have been earmarked for the purchase and renovation of the new office, business expansion and marketing activities, bank borrowing, working capital as well as listing expenses.
Funds raised from the offer for sale through private placement to select investors will accrue entirely to the selling shareholders, namely its managing director Chai Jeun Sian, non-executive director Ikwan Hafiz Jamaludin and his private vehicle Rantai Inspirasi, as well as substantial shareholder Sa Chee Peng.
Chai currently holds a 20% stake in JS Solar, while Ikhwan holds 21.25% directly and 29.75% via Rantai Inspirasi, and Sa has 24%.
Post-IPO, Chai will have 14.7% while Ikhwan will have a direct 16.15% and an indirect 19.61% under Rantai Inspirasi, and Sa will have 16.94%.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.