SOLARVEST'S IPO OVERSUBSCRIBED BY 35 TIMES

KUALA LUMPUR, Nov 14 -- Solarvest Holdings Bhd, which is slated for a listing on Bursa Malaysia's ACE Market on Nov 26, today announced that the public portion of its initial public offering (IPO) has been oversubscribed by 35 times.

The company, which specialises in turnkey engineering, procurement, construction and commissioning (EPCC) services for solar photovoltaic systems, received 10,205 applications for 708.32 million new shares valued at RM247.91 million for the 19.53 million new shares earmarked for the Malaysian public.

In a statement, Solarvest said 3,886 applications for 210.94 million new shares were received for the Bumiputera portion, which translated into an oversubscription rate of 20 times.

For the remaining public portion, the company received 6,319 applications for 497.38 million new shares, representing an oversubscription rate of 50 times.

Solarvest, which is 45 per cent owned by Main Market-listed Chin Hin Group Bhd, plans to raise about RM34.6 million under its listing exercise, which entails issuing 98.83 million new shares at 35 sen each.

The 19.53 million new shares available for eligible directors, employees and persons who have contributed to the success of the group have all been fully subscribed.

The private placement of 59.77 million shares available to selected investors as well as Bumiputera investors approved by the International Trade and Industry Ministry have also been fully placed out.

It said the notices of allotment would be posted to successful applicants by Nov 21.

Group chief executive officer, Davis Chong Chun Shiong, said the overwhelming interest from the Malaysian public was an encouraging affirmation of its business, growth and the journey it aimed to embark on.

"There are huge untapped opportunities in the industry, and we believe that Solarvest is well positioned to benefit from the rising demand for clean energy,” he added.

Of the proceeds raised, it will use RM19.2 million or 55.5 per cent for working capital for daily operations and future projects while RM3 million will be for its geographical expansion.

Solarvest said it would spread its market presence in the southern region of Peninsular Malaysia, pursuing business opportunities in Negeri Sembilan, Melaka and Johor.

Beyond Malaysia, the group plans to enter new markets Vietnam and Taiwan.

Additionally, RM4 million will be set aside to acquire new project machinery and equipment as well as to upgrade its information technology software and hardware, RM5 million for repayment of bank borrowings and RM3.4 million for listing expenses.

-- BERNAMA