Solar EPCC firm Founder Group sets terms for Nasdaq IPO

Malaysian solar firm Founder Group Limited on Thursday set the terms of its proposed initial public offering (IPO) in the US, which will seek to raise roughly USD 10 million (EUR 9.26m) in net proceeds for business expansion.

Some 2.5 million shares will be placed in the transaction. The targeted price range has been set at between USD 4.00 and USD 5.00 apiece, the prospectus shows.

An overallotment option has been made available to the underwriters to sell 375,000 more shares, which exercised in full will bring the net proceeds to USD 9.76 million at the mid-point of the set price range.

US Tiger Securities Inc is the sole bookrunner hired for the offering.

The Klang-headquartered firm has applied to list its shares on the Nasdaq stock exchange under the trading symbol FGL. At USD 5.00 per share, the Malaysian company would command a market capitalisation of about USD 93 million, based on the number of shares outstanding upon completion of the IPO.

Founder Group offers engineering, procurement, construction and commissioning (EPCC) solutions for solar photovoltaic (PV) facilities in Malaysia, with a primary focus on two key segments -- large-scale solar projects and commercial and industrial (C&I) solar projects.

The company is majority owned by energy-related services provider Reservoir Link Energy Bhd with a shareholding of 51%. CEO Lee Seng Chi, in turn, holds a stake of 32.97%.

The business booked nearly MYR 148.1 million (USD 32.4m/EUR 30.0m) in revenue in 2023, up from MYR 63.5 million a year earlier. Net income in the same period rose to MYR 7.14 million from MYR 3.94 million.

Founder Group noted in the prospectus that the IPO proceeds will be directed towards geographic expansion across Southeast Asia, adding hydropower and biogas into its offering, as well as for general working capital and mergers and acquisitions (M&A).

(USD 1 = EUR 0.927)

(MYR 1 = USD 0.219/EUR 0.203)