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BUSINESS

ACE Market-bound Sunview expects to raise RM34 mln from IPO

23/09/2022 05:15 PM

KUALA LUMPUR, Sept 23 (Bernama) -- Renewable energy (RE) company, Sunview Group Bhd, which is en route for listing on the ACE Market of Bursa Malaysia on October 17, is expected to raise RM34.22 million from its initial public offering (IPO).

Chief executive officer Ong Hang Ping said of the proceeds raised from the IPO, RM20.1 million or 58.72 per cent would be used to fund the company’s working capital requirements, RM7 million or 20.46 per cent for repayment of bank borrowings and RM1.86 million or 5.42 per cent towards capital expenditure.

He said RM1.67 million or 4.88 per cent would be used for business expansion while the remaining RM3.6 million or 10.52 per cent would be utilised to defray listing expenses. 

“Upon listing, the company will have a market capitalisation of RM135.72 million based on enlarged share capital of 468 million shares,” he told reporters in a briefing after the launching of the company’s prospectus here today.

Ong said the company planned to leverage on its track record since 2013 to secure new contracts to boost its order book in the solar photovoltaic (PV) business and expand the solar power generation and supply business to build a strong recurring income stream.

“We plan to set up a new office in Johor to facilitate our business expansion and enhance market position in the southern region.

“Besides, we are also looking into expanding EPCC (engineering, procurement, construction, and commissioning) of biogas and complementary products,” he said.

On the rising US dollar impact on imported solar panels price, one of the major equipment for the company’s operation, he said imported solar panels prices has been fluctuating year to year, where during the pandemic times, rose up to 60 per cent.

However, he said the prices has been reduced to about 40-50 per cent as things are more stable.

“We think the worst is past. Although we cannot control the price increase, we can leverage on our experience and expertise to optimise and see how we can manage and make it more cost-effective to improve our margin,” he said.

Ong said he is confident on the outlook of the company, which has an experience for about 10 years in the RE business, as it has also been closely working with solar PV investors where it has been carrying out EPCC of solar facilities for the investors.  

“Our relationship with solar PV investors will provide us with the advantage of offering zero-capital expenditure to power consumers and encourage the installation of solar PV facilities to serve as a platform for our EPCC of solar PV facility business segment,” he added.

Sunview is mainly involved in EPCC as well as construction and installation services of solar PV facilities, solar power generation and supply.

The company’s IPO will be done via the issuance of 118 million new shares, representing 25.21 per cent of the enlarged issued shares of Sunview at an issue price of 29 sen per share.

As at late practicable date (LPD) of Aug 31, 2022, the company has a total unbilled orderbook of RM558.34 million, including seven EPCC for large scale solar (LSS) PV plant projects which are expected to be completed progressively between the financial year (FY) 2023 and FY 2024.

-- BERNAMA

 


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