Malaysian solar company Founder Group Limited has announced the terms of its upcoming initial public offering (IPO) in the United States, aiming to raise approximately USD 10 million (EUR 9.26 million) in net proceeds for business expansion.
The IPO will involve the placement of 2.5 million shares, with a targeted price range set between USD 4.00 and USD 5.00 per share. According to the prospectus, an overallotment option allows underwriters to sell an additional 375,000 shares, potentially increasing net proceeds to USD 9.76 million at the midpoint of the price range.
US Tiger Securities Inc. has been appointed as the sole bookrunner for the offering. The company plans to list its shares on the Nasdaq stock exchange under the ticker symbol FGL. If priced at USD 5.00 per share, Founder Group would have a market capitalization of approximately USD 93 million based on the number of shares outstanding post-IPO.
Founder Group, headquartered in Klang, Malaysia, specializes in engineering, procurement, construction, and commissioning (EPCC) services for solar photovoltaic (PV) facilities. The company focuses on large-scale solar projects and commercial and industrial (C&I) solar projects.
Majority-owned by Reservoir Link Energy Bhd with a 51% stake, Founder Group also has CEO Lee Seng Chi holding a 32.97% share. The company reported nearly MYR 148.1 million (USD 32.4 million/EUR 30.0 million) in revenue for 2023, up from MYR 63.5 million the previous year. Net income increased to MYR 7.14 million from MYR 3.94 million.
The IPO proceeds are earmarked for geographic expansion across Southeast Asia, incorporating hydropower and biogas into the company's portfolio, and supporting general working capital and mergers and acquisitions (M&A), as noted in the prospectus.
