Verdant Solar eyes M&A to expand beyond residential segment

Thursday 08 Oct 2026

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KUALA LUMPUR (Oct 22): Solar photovoltaic solutions provider Verdant Solar Holdings Bhd (KL:VERDANT) is eyeing potential mergers and acquisitions (M&As) with companies in the solar industry outside the residential segment as part of efforts to diversify its product portfolio.

At a press conference following its listing on the ACE Market on Wednesday, managing director Lim Tzer Haur said the group is seeking targets that complement Verdant Solar’s existing business ecosystem.

“With the capital raised from the listing, we think M&A will be a faster way for us to grow the business,” said Lim.

The group is looking into companies that share common values with good competency and product fit, although no formal discussions have been held, he said.

Future acquisitions would allow Verdant Solar to introduce complementary products on its existing customer base, according to Lim.

About 60% of the group's sales are driven by repeat business, with many of its “few thousand customers” returning through referrals, he added.

Shares of Verdant Solar opened at 37 sen on its Bursa debut, some 19% higher versus its initial public offering (IPO) price of 31 sen per share.

The group raised RM44 million, part of which will be used to expand its physical presence with new branches in Melaka, Perak, and Pahang. The expansion follows the positive run at its Penang and Johor branches, which currently account for about 36% of total revenue.

Commenting on Budget 2026, Lim said the government’s continued support for renewable energy is a good sign for the industry.

While Verdant’s strength remains in the residential segment, according to Lim, the upcoming carbon tax measures could also spur demand in the commercial and industrial (C&I) segment, where the group is actively expanding.

Edited ByAdam Aziz

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