KUALA LUMPUR (April 4): Verdant Solar Holdings Bhd, a rooftop solar panel installation company, is seeking a listing on the ACE Market of Bursa Malaysia to raise funds for business expansion. This includes establishing new branch offices, pursuing mergers and acquisitions, and enhancing its digital infrastructure.

According to its draft prospectus filed with Bursa Malaysia, its initial public offering (IPO) will involve a public issue of 142 million new shares, representing 17.37% of its enlarged issued share capital. There will also be an offer for sale of 73.59 million existing shares to selected investors, representing about 9% of its enlarged issued shares.

Under the proposed public issue, the company will allocate 40.88 million shares to the public, 25 million shares to eligible persons, and 76.12 million shares to selected investors via private placement.

Since 2015, Verdant Solar has operated in the solar photovoltaic (PV) industry, initially focusing on marketing solar PV systems for residential properties and trading solar ventilators. In 2019, the group expanded its business to include engineering, procurement, construction, and commissioning services, followed by the addition of operations and maintenance services in 2023.

As of the end of February 2025, Verdant Solar has installed a total of 55.64 megawatt-peak of solar panels across residential properties.

For its financial year ending June 30, 2024, the group reported a net profit of RM6.65 million on revenue of RM56.28 million. The gross profit margin was 35.11%, while the profit before tax margin stood at 15.67%.

Proceeds from the offer for sale will go to its selling shareholders: managing director Lim Tzer Haur, his spouse Ng Kel Mynn, and substantial shareholder Ong Hsiao Loong. Post-IPO, the Lim couple's shareholdings will decrease to 66.27% from 90%, while Ong’s stake will fall to 7.36% from 10%.

Mercury Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.