Northern Solar Holdings Bhd, poised for its debut on the ACE Market, has unveiled plans to expand its solar energy footprint across Malaysia. The company will prioritize key regions, including Johor and Penang, while continuing to serve its established markets in the Klang Valley and Selangor, according to Managing Director Lew Shoong Kai.
Founded in 2019, Northern Solar has rapidly scaled its operations, completing over 1,000 solar energy installations nationwide. These installations span both commercial and industrial (C&I) buildings as well as residential properties, achieving a total installed capacity of 71.9 megawatts (MW).
“This IPO represents a pivotal moment for Northern Solar as we look to align with growing environmental awareness and the urgent need to address climate change,” Lew said during the launch of the company’s prospectus. The public offering aims to raise up to RM64.8 million.
Expanding Portfolio and Strategic Partnerships
Northern Solar currently operates 17 solar photovoltaic (PV) systems and holds a 20% stake in an additional four systems under Engtex Energy Sdn Bhd, a subsidiary of Engtex Group Bhd (KL:ENGTEX), which owns the remaining 80%. Furthermore, the company holds a 51% share in Norwatt Power Sdn Bhd, a solar PV system developer partially owned by Tengku Fahad Mua’adzam Shah through Hawthorne Capital Sdn Bhd (25%) and Lagenda Properties Bhd (KL:LAGENDA), which holds 15%.
Strategic Investment in Infrastructure
As part of its growth trajectory, Northern Solar intends to allocate RM32.3 million from the IPO proceeds to construct a state-of-the-art corporate headquarters equipped with an engineering command center. The facility will centralize operations and improve the monitoring of energy performance for its clientele.
Lew also outlined the company’s commitment to a “develop-own-operate” model for its PV asset portfolio, targeting Net Energy Metering (NEM) and Self-Consumption (Selco) customers. This strategy is expected to generate stable, recurring revenue streams.
Financial Growth and Market Positioning
For the financial year ending March 31, 2024 (FY2024), Northern Solar reported a 65% year-on-year increase in profit after tax (PAT) to RM10.09 million, up from RM6.12 million in FY2023. Revenue also saw a significant rise, climbing 74% to RM77.97 million compared to RM44.67 million in the previous year. In FY2022, the company posted a PAT of RM3.11 million on revenue of RM22.23 million.
As of November 19, Northern Solar’s unbilled order book exceeds RM70 million, with additional tenders submitted worth over RM1 billion. Lew estimated a 15% success rate on these tenders based on internal projections.
The IPO, priced at 63 sen per share, values the company at a market capitalization of RM249.23 million, with a price-to-earnings (P/E) ratio of 24 times its FY2024 earnings. The offering is open for subscription beginning December 20, with applications closing on January 20. M&A Securities acts as the adviser, sponsor, underwriter, and placement agent for the listing.
“This IPO marks the beginning of an exciting chapter for Northern Solar as we aim to drive Malaysia’s transition to renewable energy,” Lew concluded.
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