KUALA LUMPUR (Sept 29): Verdant Solar Holdings Bhd, which installs solar panels, is now accepting applications for its shares at 31 sen per share for its listing on the ACE Market.
The proposed initial public offering (IPO) will raise about RM44 million for Verdant Solar and another RM22.8 million for existing shareholders cashing out part of their shares, according to its prospectus launched on Monday. All in all, the IPO will raise a total of RM66.8 million.
Applications close on Oct 7, with a scheduled listing date of Oct 22.
The listing would “provide the platform for Verdant Solar to sustain and accelerate growth”, underscoring its ambition to cement its position as an end-to-end solar solutions firm, managing director Lim Tzer Haur said during the prospectus launch.
Verdant Solar has been in the solar photovoltaic industry since 2015, initially marketing solar systems for residential properties before expanding into engineering, procurement, construction and commissioning (EPCC) in 2019, and operations and maintenance in 2023.
The company plans to channel RM44.02 million of the proceeds from the public issuance into an expansion drive that includes establishing new branch offices in Melaka, Ipoh and Kuantan; pursuing future mergers and acquisitions; and enhancing its digital infrastructure. Part of the funds will also go towards working capital and listing expenses.
Lim said Verdant Solar will prioritise growth and the company is not planning to distribute dividends in the near term to allow reinvestment.
“If we cannot find opportunities within the next year, we may consider dividends later,” he said. “Our investors want to see the company grow.”
The listing will offer investors up to a 26.37% stake in Verdant Solar that made a profit after tax of RM17.20 million on revenue of RM111.43 million for the financial year ended June 30, 2025 (FY2025).
Upon listing, Verdant Solar will have a market capitalisation of RM253.46 million, valuing the company at 14 times its FY2025 earnings.
In FY2025 alone, Verdant Solar completed 4,038 EPCC projects, more than double the prior year, including 3,983 residential and 55 commercial and industrial projects. Cumulatively, it has installed 70.10MWp of solar capacity since inception.
Under the public issuance, 40.88 million shares are offered to the public, 25 million shares to eligible persons, and 76.12 million shares via private placement.
The offer for sale, which could raise RM22.81 million, meanwhile will go to selling shareholders Lim Tzer Haur, his spouse Ng Kel Mynn, and substantial shareholder Ong Hsiao Loong.
Post-listing, the Lim couple’s stake will fall to 60.38% from 90%, while Ong’s will decline to 7.36% from 10%.
Mercury Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.