KUALA LUMPUR (Jan 27): ES Sunlogy Bhd, set to list on the ACE Market of Bursa Malaysia on Feb 20, is participating in the large-scale solar 5+ programme (LSS5+) to expand its renewable energy (RE) portfolio.
ES Sunlogy’s chief executive officer Sam Teo Chee Teong said on Monday that the company’s decision to join LSS5+ aligns with its strategy to generate recurring revenue, strengthen its foothold in the RE sector and support the nation's RE goals.
The group currently operates a 20.76MW solar farm and holds a 40% stake in another 30MW solar farm project presently under construction.
“By participating [to bid for 100MW], we aim to enhance our position in the solar photovoltaic (PV) market while contributing to sustainable energy initiatives,” Sam said during a virtual press conference held in conjunction with the company prospectus launch.
“We have submitted our proposal and are optimistic about the results, which are expected to be announced within the first half of 2025,” he added.
Should the company’s bid succeed, ES Sunlogy plans to fund the capital expenditure for the LSS5+ project through a combination of internally generated funds and/or bank borrowings.
Besides this, the company is currently developing the Selarong large-scale solar PV (LSSPV) plant, which has the potential to generate up to 29.99MW of electricity.
The group is targeting December 2025 for the commencement of operations at the Selarong plant.
The project spans approximately 5.88 million square feet and is being undertaken as a joint venture with TNB Renewables Sdn Bhd, a unit of Tenaga Nasional Bhd (KL:TENAGA), and Blazing Solar Sdn Bhd, a subsidiary of Solarvest Holdings Bhd (KL:SLVEST). ES Sunlogy holds a 40% stake in the venture, while TNB Renewables and Blazing Solar each own 30%.
ES Sunlogy also currently operates the Junjong LSSPV Plant, located in Kulim, Kedah, that can generate 20.76MW of electricity. The plant has a commencement period of 25 years from July 2023 till July 2048.
From the financial year ended July 31, 2021 (FY2021) to FY2024, revenue derived from solar projects contributed 23.8%, 11.7%, 33.2%, and 6.6% to the group’s total revenue, respectively.
In FY2024, ES Sunlogy made a net profit of RM13.54 million on revenue of RM191.09 million.
ES Sunlogy also provides mechanical and electrical engineering services for electricity supply distribution systems and building services. It is currently working on 44 engineering projects with a total contract value of RM496 million and unbilled contract value of RM269 million.
ES Sunlogy’s initial public offering (IPO), priced at 30 sen per share, opened for subscription on Monday and will close on Feb 5. At this IPO price, the company is valued at a market capitalisation of RM210 million, with a price-to-earnings ratio of 15 times based on its FY2024 earnings.
M&A Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.