WITH the official transfer of its listing status to the Main Market of Bursa Malaysia today, clean energy specialist Solarvest Holdings Bhd can now attract more institutional funds who do not have the mandate to invest in ACE Market companies.
In a way, the migration is a meaningful one for Solarvest as it enables the company to raise more funds to fuel its expansion in the regional market as ASEAN looks set to become one of the fastest-growing regions with an ambitious target of 23% renewable energy (RE) by 2025.
“The elevation of our listing status reflects the strong demand and growing recognition of the importance of solar energy in Malaysia,” commented Solarvest’s group CEO Davis Chong Chun Shiong.
“It will pave the way for us to expand the group’s visibility by giving us the platform to share the robust growth potential of the domestic solar industry to a wider pool of investors, both locally and abroad.”
Apart from regional expansion, Solarvest is also in the midst of transforming its business model to expand beyond engineering, procurement, construction and commissioning (EPCC) works and to improve on increasing our recurring income via asset ownership and so on.
Moreover, the company is also looking at diversifying into related businesses in the clean energy sphere. Some of the areas that it could potentially explore are the likes of green technology-related services and battery storages businesses.
“All-in-all, we believe our transfer to the Main Market and the many implicit benefits that come with it will bring us closer to realising our ongoing multifaceted expansion plans,” noted Chong.
As the first pure-play solar player listed on the Main Market, the group’s robust growth, strong profit track record, and public holding spread in the past financial years have surpassed the criteria for the migration.
Its net profit for the past three financial years amounted to RM43.5 mil with a net profit of RM16.4 mil for the latest financial year ended March 31, 2021.
Accordingly, the group has exceeded the profit requirements for the transfer which requires the group to have an aggregate net profit of at least RM20 mil for the past three full financial years as well as a net profit of at least RM6 mil for the most recent financial year.
At the close of today’s mid-day trading, Solarvest was down 2 sen or 1.45% to RM1.36 with 2.61 million shares traded, thus valuing the company at RM903 mil. – Oct 13, 2021