KUALA LUMPUR: Northern Solar Holdings Bhd is setting its sights on expansion following its listing on the ACE Market of Bursa Malaysia, with plans to establish branches in Penang and Johor Bahru.
Managing director Lew Shoong Kai said the expansion is expected to be concluded within the next 12 months, strengthening its presence in Malaysia’s growing solar energy sector.
The solar renewable energy specialist, which focuses on engineering, procurement, construction, and commissioning (EPCC) of solar systems, renewable energy generation, and operations and maintenance, is targeting a 20% growth in its rooftop solar segment, which offers the highest profit margins.
Lew said Northern Solar ranks among Malaysia’s top 10 rooftop solar players, though precise market share data is limited due to policy-driven regulations.
“The company currently has a tender book of 380 projects, which includes industrial parks and residential developments. Northern Solar will actively work on converting these tenders into secured contracts,” he said in a press conference following the company’s listing today.
Lew said the company is currently examining its participation in the Large Scale Solar 5 (LSS 5) programme.
“We are currently conducting an in-depth analysis. Based on the study of all LSS 5 schemes, the first phase is expected to involve a capacity of two gigawatts, making it a strategic step to consider.
“The government has extended this initiative to LSS 5+, with an additional two gigawatts. The estimated project value over the next three years is between US$15 billion and US$20 billion,” he added
Lew noted that China’s oversupply of solar modules has lowered material costs, benefiting Northern Solar’s procurement strategy. “The US import tariff hike on Chinese solar panels does not affect the company, as it sources directly from China,” he said.
While competition in the solar EPCC business has intensified, Lew remains optimistic, noting that project values and demand have increased proportionally, particularly with the extension of the Net Energy Metering Scheme and the lifting of the self-consumption limit.
Northern Solar debuted on the ACE Market at 90 sen, a 42.86% premium over its initial public offering (IPO) price of 63 sen per share.
Lew said the IPO marks a major milestone and positions the company for further expansion. “This listing is a strong vote of confidence from the market. With the funds raised, we are committed to scaling up operations and capitalising on Malaysia’s growing demand for renewable energy.”
Northern Solar raised RM42.4 million from the IPO. A total of RM3.2 million (7.4%) from the proceeds will be used to establish a new corporate office. The company plans to allocate RM29.2 million (68.8%) of the proceeds to finance the expansion of its photovoltaic (PV) solar system business. The remaining funds will be used to repay bank borrowings amounting to RM5.5 million (13%) and to cover estimated listing expenses of RM4.6 million (10.8%).
