Malaysian solar firm Founder Group Limited has downsized its proposed initial public offering (IPO) in the U.S. to approximately USD 4.5 million (EUR 4.03 million) by reducing the number of shares to be offered by 35%.
Under the revised terms, the Klang-headquartered company will sell 1.625 million ordinary shares, down from the initially planned 2.5 million. Additionally, underwriters have been granted a 45-day option after the offering's closing to purchase up to an additional 15% of the ordinary shares at the IPO terms.
The targeted price range remains unchanged at USD 4.00 to USD 5.00 per share. At the midpoint of this range, net proceeds from the offering are estimated to be about USD 4.54 million. If the over-allotment option is fully exercised, the company anticipates raising USD 5.55 million.
The funds will be allocated for geographic expansion across Southeast Asia, the addition of hydropower and biogas to its portfolio, as well as general working capital and potential mergers and acquisitions (M&A).
Founder Group plans to list its shares on the Nasdaq stock exchange under the symbol FGL. At USD 5.00 per share, the company would achieve a market capitalization of approximately USD 88 million based on the number of shares outstanding upon IPO completion on a fully diluted basis.
The company provides engineering, procurement, construction, and commissioning (EPCC) solutions for solar photovoltaic (PV) facilities in Malaysia, focusing primarily on large-scale solar projects and commercial and industrial (C&I) solar initiatives.
Founder Group is majority-owned by Reservoir Link Energy Bhd, which holds a 48.73% stake, while CEO Lee Seng Chi owns 30.78%.
