KUALA LUMPUR, 11 February – NORTHERN Solar Holdings Bhd closed its debut day on the ACE Market 25% higher, having raised nearly RM65 million through its share sale amid strong investor interest.

The stock opened at 90 sen on February 6, compared to its IPO price of 63 sen per share.

A total of 133.61 million shares were traded, ranking it the fourth most active counter on the exchange.

Northern Solar Managing Director Lew Shoong Kai noted that the company is well-positioned to secure additional solar projects following the recent expansion of rooftop solar capacity under the net energy metering (NEM) scheme, as well as the introduction of new guidelines for the self-consumption (Selco) programme.

“We are targeting more solar projects from both the public and private sectors,” he said.

The updated guidelines have removed the 85% demand capacity cap for non-domestic users and now permit installation of solar panels on ground surfaces and bodies of water.

Primarily providing engineering, procurement, construction, and commissioning (EPCC) services for solar photovoltaic (PV) systems, Northern Solar has completed 1,165 EPCC projects under the NEM and Selco programmes as of November 21, 2024.

Speaking after the company’s listing ceremony, Lew stated: “Earnings visibility for the financial years ending March 31, 2025 (FY25) and FY26 will be supported by an unbilled orderbook of RM83.2 million as of November 19, 2024.”

This orderbook comprises RM68.6 million for EPCC projects on commercial and industrial buildings, RM13.8 million for residential projects, and RM0.8 million for operations and maintenance of solar PV systems.

“This orderbook will sustain operations over the next 12 months, with revenue recognition expected in FY2025 and FY2026 based on project progress,” he added.

Northern Solar’s tenderbook has surged to RM1.8 billion, up substantially from RM272.5 million as of May 15, 2024, reflecting bids on numerous projects across Malaysia’s public and private sectors.

Currently, the tenderbook includes 387 tenders for EPCC solar PV projects.

“Our Bursa listing is timely, enhancing our profile, raising capital for working capital needs, strengthening capabilities, and enabling us to capture further opportunities in the expanding solar renewable energy sector,” Lew said.

Over half of the IPO proceeds, RM29.17 million, will be allocated for working capital to support the expansion of its solar PV systems business.

An additional RM3.2 million is earmarked for establishing a new corporate office with an engineering command centre in Petaling Jaya, Selangor, along with expanding offices in Johor and Penang.

Furthermore, RM5.5 million will be used for bank loan repayments, while RM4.55 million will cover listing-related expenses.

M&A Securities Sdn Bhd acted as the advisor, sponsor, underwriter, and placement agent for the IPO.

Sources: https://themalaysianreserve.com/2025/02/11/northern-solar-surges-25-on-ace-market-debut/