Northern Solar Holdings Bhd – a Malaysia’s leading solar energy provider – has announced an influential step to file for an initial public offering (IPO) on the ACE Market. This IPO set to fund the company's ambitious expansion plans, comes as part of Northern Solar’s strategy to capitalize on the surging global demand for renewable energy.
IPO Details Set to Energize Northern Solar’s Growth
As the renewable energy sector continues to gain traction, Northern Solar is positioning itself to capture a significant market share by leveraging this IPO. The funds raised will bolster the company’s efforts to scale its operations and strengthen its presence in the fast-evolving solar industry.
Northern Solar Holdings’ IPO will offer two classes of shares together representing a 26% stake in the company. The offering includes 67.25 million new shares and 35.6 million existing shares. While pricing details are yet to be finalized – they are expected to be announced by the end of this month – following the submission of the draft prospectus to Bursa Malaysia.
“This IPO marks a pivotal moment for Northern Solar as we seek to expand our footprint in the renewable energy sector” said CEO of Northern Solar Holdings. “The funds raised will be instrumental in acquiring state-of-the-art equipment, which will help in recruiting top engineering talent and opening new corporate headquarters to support our geographical expansion.”
The primary goals of the IPO proceeds include enhancing operational capacity through new equipment and expanding the company’s engineering capabilities. Also, will paying down existing debt and establishing a new corporate headquarters. These efforts are designed to position Northern Solar as a leading player in the renewable energy market – both in Malaysia and globally.
Strengthening Strategic Partnerships and Operational Scope
Northern Solar has built a robust track record in the engineering construction and commissioning (EPCC) of photovoltaic systems. The company’s portfolio — which includes multiple solar PV systems and the ownership of Engtex Energy Sdn Bhd — is poised to deliver steady income in the years ahead.
“The strategic partnerships we’ve cultivated are vital to our long-term success,” commented Chief Operating Officer of Northern Solar. “Our collaboration with industry leaders – including real estate developer Lagenda Properties Bhd – ensures we are well-positioned to capitalize on the growing opportunities in the green energy sector.”
For the financial year ending March 2024, Northern Solar reported earnings of RM 10.09 million on revenue of RM 77.97 million. These strong financials underscore the company’s ability to thrive in the dynamic renewable energy market.
The global solar power capacity is expected to rise to 2,839 GW by 2030, according to a report by the International Renewable Energy Agency (IRENA). Northern Solar’s ongoing and future projects are set to contribute significantly to this growth, therefore reinforcing the company’s commitment to renewable energy and sustainable development.
Driving Sustainability Through Renewable Energy Initiatives
Northern Solar’s expansion plans are deeply rooted in the global shift towards renewable energy, driven by international efforts to combat climate change and reduce carbon emissions. The company’s strategic initiatives align with these goals — reflecting a strong commitment to sustainability.
“The future of energy is renewable and Northern Solar is at the forefront of this transformation,” stated, Director of Sustainability at Northern Solar. “Our expansion not only supports Malaysia’s renewable energy targets but also contributes to global efforts to build a cleaner and greener future.”
Malaysia has set an ambitious goal to achieve 20% renewable energy capacity in its power mix by 2025. Northern Solar’s expansion efforts, which include the installation of additional solar panels and the development of solar farms — are critical to achieving this target.
The company has engaged M&A Securities as its adviser and placement agent for the IPO. This partnership will facilitate Northern Solar’s market entry and operational expansion ensuring the company’s continued growth in the competitive solar energy sector.
With the IPO on the horizon, Northern Solar is poised to play a significant role in the global transition to renewable energy. The company’s commitment to innovation and sustainability, coupled with its strategic expansion plans, positions it as a key player in the future of energy.