June 26, 2024

Northern Solar Holdings Files for ACE Market IPO to Fund Expansion

Northern Solar Holdings Bhd, Malaysia’s leading solar power solutions-provider, announces initial public offering (IPO) to raise funds needed for its aggressive expansion plans and market presence in the growing solar energy sector.

With a rising number of investors opting for solar power for rooftop installation, the company eyes a remarkable expansion in industry.

Key Details of the IPO

In Northern Solar’s IPO proposal, two classes are being issued, both of which bring in a 26% stake in the company: an offer of 67.25 million new shares, and an offer-for-sale of 35.6 million existing shares.

Pricing details of the offering will be announced by the end of this month; the draft prospectus submitted to Bursa Malaysia details all this.

This is designed to facilitate Northern Solar’s growth strategy by strengthening its financial position via the IPO. Proceeds from the IPO will be used for equipment to expand capacity, engineering talent to expand its capabilities on client projects.

Paying down the old loans to the bank and opening new corporate headquarters to expand geographical scope are the other two main goals for the programmes.

Operational Scope and Strategic Partnerships

Northern Solar has acquired a renowned track record in the engineering, procurement, construction, and commissioning (EPCC) of photovoltaic systems.

Combined with a portfolio of multiple solar PV systems and ownership and operational control of Engtex Energy Sdn Bhd, income from such activities is expected to generate steady income over the coming years.

Northern Solar’s earnings for the financial year ended 31 March 2024 were RM 10.09 million on revenue figures of RM 77.97 million. Such a show of performance would not only prove how great the company works but also how it would thrive in the dynamic growth environment of the renewable energy sector.

According to the report by the International Renewable Energy Agency (IRENA), the global solar power capacity is expected to rise to 2,839 GW by 2030.

High-level strategic partnerships, coupled with support from prominent influences in the industry, sustain a picture of market and mindshare growth from which the company refuses to back down.

Among Northern Solar’s co-founders, the real estate developer Lagenda Properties Bhd, as well as Lew Shoong Kai and Chew Win Hoe, help to bring the company’s vision and ideas to life, and utilize all the emerging opportunities that the green energy sector now has to offer.

Commitment to Sustainability and Renewable Energy

The expansion plans of Northern Solar Holdings Bhd are embedded in the global shift towards renewable energy resulting from international efforts to combat climate change and dramatically reduce carbon emissions associated with human activities.

Renewables are set to become the backbone of future energy policy across the world. Northern Solar’s path of strategic expansion is in any way out of synch with such goals.

According to the International Renewable Energy Agency (IRENA), the cumulative global solar power capacity is expected to reach 2,839 GW by 2030. Northern Solar’s business expansion, including introducing new infrastructure and improving the operational capability will add a huge amount of solar power capacity to the global one.

By installing more and more solar panels and solar farms, Northern Solar tackles the increasing demand for clean energy.

Malaysia has pledged to get its power mix to 20 per cent renewable energy capacity by 2025, while Northern Solar is powering national targets, providing the infrastructural support and technical skills to boost the adoption of solar power.

With the help of M&A Securities become the adviser, sponsor, underwriter, and placement agent of IPO, Northern Solar Holdings’ hold up to access it space of market with the planned investment and operation extension friend with the up-coming IPO issuance. With the IPO coming, Northern Solar is promised to assist in the development of energy solutions.

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