SOLAR photovoltaic (PV) solutions provider Ray Go Solar Holdings Bhd aims to expand its reach in Malaysia’s solar industry with its two-pronged growth strategy of providing solar leasing solutions as well as expanding footprint to Penang and Johor.
Ray Go Solar made its LEAP Market debut at 16 sen per share or a 4 sen premium over its 12 sen issue price. The first trade was done at 10,000 shares.
Incorporated in 2012, Ray Go Solar offers comprehensive solar PV solutions comprising engineering, procurement, construction and commissioning (EPCC) of roof-mounted and ground-mounted solar panels as well as post-project maintenance services.
The group, which has extensive experience in implementing solar PV solutions across the industrial, commercial, and residential segments, has completed 68 projects with 11.02 megawatt peak (MWp) of total installed capacity as of end-October 2021.
Its notable customers to-date include QL Resources Group, Nippon Paint (M) Sdn Bhd and Yeo Aik Hevea (M) Sdn Bhd.
“Our solar PV solutions will enable our customers to not only achieve greater energy efficiency and cost savings, but also align their efforts to support global sustainability goals,” commented Ray Go Solar’s CEO Datuk Ray Tan.
“To fast track the adoption of solar energy solutions in Malaysia, it is important to lower the entry cost to our prospective clients. Thus, we are introducing our solar leasing solutions in 2022 which will significantly reduce the cost barrier and boost the penetration rate of our solar PV solutions.”
Given the renewable energy industry is anticipated to grow multi-fold on the back of robust demand and favourable government policies, Ray Go Solar will be expanding its operational footprint nationwide to capture the growing opportunities in the northern and southern regions of Peninsular Malaysia.
Ray Go Solar’s initial public offering (IPO) entailed the issuance of 52.2 million new ordinary shares by way of private placement, representing 20.5% of the group’s enlarged issued share capital of 255 million shares at a price of 12 sen per placement share.
Through its listing, the group will raise RM6.27 mil in proceeds, of which RM2 mil is allocated for expansion into solar leasing programme, RM1 mil for operational expansion to Penang and Johor, and RM2.43 mil for working capital. The remaining RM840,000 will be utilised for listing expenses.
According to market researcher Infobusiness Research, the market size for grid-connected, distributed and roof-mounted solar PV systems is projected to grow to circa RM780.1 mil in 2024, translating into compounded annual growth rate (CAGR) of 5.4% from 2019.
Besides that, favourable government policies such as the launch of a generous RM1 bil fund under Budget 2022 to encourage micro, small, and medium enterprises (MSME) to transition towards low carbon operations as well as the pledge for Malaysia to achieve carbon neutrality by 2050 have further reaffirmed prospects of Malaysia’s renewable energy industry. – March 11, 2022
