KUALA LUMPUR (Oct 21): Solarvest Holdings Bhd (KL:SLVEST) has proposed to raise up to RM254.1 million via a private placement of 10% of its enlarged share base to fund solar photovoltaic (PV) projects and working capital, and to repay borrowings.
The exercise will comprise up to 84.7 million shares to be issued to independent third parties to be identified later, according to the solar PV solutions outfit’s bourse filing on Tuesday.
The issue price will also be fixed later. The estimated RM254.1 million in proceeds to be raised is based on an illustrative issue price of RM3, a 4.15% discount to Solarvest shares’ five-day volume-weighted average price of RM3.13 up to Oct 17.
Nearly half of the estimated proceeds, or RM124.6 million, has been earmarked to partly finance its equity outlay for three solar PV projects.
Of the rest of the proceeds, RM79.2 million will go towards funding working capital, RM50 million will be used to repay borrowings, and the remainder will be utilised to defray the exercise’s expenses.
Specifically, Solarvest will fork out RM49 million for its solar project in Larut and Matang, Perak, RM45.6 million for its project in Mukah, Sarawak, and RM30 million for the project in Kuala Langat, Selangor.
The Larut and Matang project is a 470-megawatt alternating current (MWac) large-scale solar PV plant being undertaken by a consortium comprising Malakoff Corp Bhd (KL:MALAKOF) (80%) and Solarvest (20%).
Meanwhile, Solarvest is the 60% owner of Mukah Solar Powerplant Sdn Bhd, which is undertaking the 100MWac solar PV plant in Mukah, together with Press Metal Aluminium Holdings Bhd (KL:PMETAL). The facility’s total estimated investment cost is RM380 million, which will be mainly funded by debt.
As for the Kuala Langat project, the group’s 60%-owned unit Nextree Synergy Sdn Bhd is developing a 60MWac solar PV plant. Construction is estimated to cost RM200 million, with the majority of funding to be provided through debt.
Solarvest noted it last undertook a private placement exercise in April 2024, where it raised RM28.61 million via the placement of 20.15 million shares.
The latest proposed cash call is expected to be completed by the first half of 2026, the group said. KAF Investment Bank Bhd has been appointed as the group’s principal adviser and placement agent for the exercise.
Shares in Solarvest ended two sen or 0.63% higher at RM3.17 on Tuesday, valuing the group at RM2.69 billion.