Northern Solar Holdings Bhd, a renewable energy company focused on solar power, has announced that its initial public offering (IPO) for the public portion has been oversubscribed by a staggering 73.2 times.
The company, set to debut on Bursa Malaysia’s ACE Market, received an overwhelming 25,772 applications for 1.47 billion shares, amounting to RM924.59 million in value. This is in sharp contrast to the 67.3 million shares allocated for public subscription, underscoring strong investor interest.
In a statement, Northern Solar revealed that the Bumiputera public portion of shares was oversubscribed by 62.5 times, with 11,865 applications submitted for 628.04 million shares. Meanwhile, the non-Bumiputera public portion attracted 13,907 applications for 839.56 million shares, representing an oversubscription rate of 83.89 times.
The IPO also included a “pink form” allocation of 7.9 million shares for eligible directors, employees, and contributors, which was fully subscribed.
With the IPO priced at RM0.63 per share, the company is aiming to raise RM42.4 million from the issuance of 67.3 million new shares. Existing shareholders will also divest 35.6 million shares via private placement. Following the listing, Northern Solar will have an enlarged share capital of 395.6 million shares, giving it a market capitalisation of RM249.2 million.
Northern Solar’s managing director, Lew Shoong Kai, expressed confidence in the company’s growth trajectory following the strong response to the IPO. He highlighted that the funds raised would be used to execute the company’s strategic expansion plans.
“The proceeds from the IPO will position us to capitalise on the growing opportunities in the solar renewable energy sector. We will focus on expanding our geographical footprint in northern and southern Malaysia, particularly in Penang, Perak, Kedah, Perlis, and Sabah, while strengthening our presence in Johor,” said Lew.
Northern Solar is slated to be listed on the ACE Market on February 6, 2025.
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