KUALA LUMPUR (Feb 6): Northern Solar Holdings Bhd (KL:NORTHERN) ended its first day on the ACE Market 25% higher after its share sale raised close to RM65 million on the back of strong investor demand.

The counter opened at 90 sen on Thursday versus its initial public offering (IPO) price of 63 sen apiece. Northern Solar climbed to a high of 95.5 sen before ending the day at 79 sen giving it a market capitalisation of RM312.52 million. Some 133.61 million shares changed hands, making it the fourth most active counter on the stock exchange.

The strong debut follows a scramble for a slice of the company during its IPO, with demand from individual retail investors exceeding the number of shares available by more than 73 times.

Northern Solar managing director Lew Shoong Kai said the company is well positioned to secure more solar projects, following the recent expansion of rooftop solar capacity under the net energy metering (NEM) scheme, as well as new guidelines for the self-consumption (Selco) programme.

“We are eyeing more solar projects from the public and private sector”, following new guidelines for the programme, Lew said in a statement.

Under the new guidelines, the government has removed the 85% demand capacity cap for non-domestic users, and would allow installation of solar panels on the ground and over bodies of water.

“Our listing on Bursa is timely to elevate our profile and raise funds for working capital, to enhance our capabilities and capture greater opportunities in the growing solar renewable energy industry.” he added.

Northern Solar — which mainly provides engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems — has completed 1,165 EPCC of solar PV systems under NEM and SeIco programmes as of Nov 21, 2024.

The company also owns and operates 10 solar PV systems and another four solar PV systems under its 20%-owned Engtex Energy Sdn Bhd. Pipe and valve maker Engtex Group Bhd (KL:ENGTEX) owns 80% of Engtex Energy.

Real estate developer Lagenda Properties Bhd (KL:LAGENDA) has a 15% stake in Northern Solar.

More than half of the proceeds, RM29.17 million, has been earmarked for working capital purposes to expand its solar PV systems business. Another RM3.2 million of the proceeds will be used to establish a new corporate office with an engineering command centre in Petaling Jaya, Selangor, and to fund the establishment of an expanded office in Johor, and an additional office in Penang.

Another RM5.5 million will be used to repay bank borrowings, and the remaining RM4.55 million for listing-related expenses.

M&A Securities is the IPO’s adviser, sponsor, underwriter and placement agent.

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