Verdant Solar Holdings Berhad IPO's Analysis

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Verdant Solar Holdings Berhad

Verdant Solar Holdings Berhad, through its subsidiaries, is principally involved in the provision of Engineering, Procurement, Construction, and Commissioning (EPCC) services for solar photovoltaic (PV) systems, Operations & Maintenance (O&M) services for solar PV systems, and the trading of solar products. The company primarily serves the residential sector but is also expanding into commercial and industrial markets across Malaysia. Its services cover the entire project lifecycle, from design and planning to installation, testing, and commissioning. Verdant Solar also offers preventive and corrective maintenance to ensure the optimal performance of installed solar PV systems. Additionally, the company trades its own brand of solar ventilation systems, Verdant Star, and other solar products like panels and inverters.

IPO Details
Market: ACE
Principal Adviser: Mercury Securities Sdn Bhd
Issuing House: Malaysian Issuing House (MIH)
Shariah Status: SC (Yes)
Listing Price: 0.31
PE Ratio: 14.76
    PE (FYE): 14.76
    PE (FPE Annualised): -
    PE (Hybrid): -
MITI allocation?: No
Closing Date: 07-Oct-2025
Balloting Date: 09-Oct-2025
Listing Date: 22-Oct-2025
Oversubscription rate: 39.6x
Average Analysts FV :
Mplus (0.41), RHB (0.44), TA (0.38), Public Invest (0.36)
iSaham IPO Score :
Market Cap: 253.46 M
Number of Shares: 817.62 M
IPO Allocations No. of Shares %
Malaysian Public 40.88 M 5.0%
Eligible Directors and employees 25.0 M 3.06%
Private placement to selected investors and others 149.705 M 18.31%
Total Allocations 215.59 M 26.37%

Offer for Sales of 73.59 M existing shares representing 9.0% enlarged shares.

Public Issue of 142.00 M new shares representing 17.37% enlarged shares.

Median Sectors PE: N/A
Median Peers PE:
Utilisation of Proceeds
Purpose Amount (RM'000) %
Expansion Establishment of branch offices in Peninsular Malaysia 14,000 31.8
Expansion Expansion through strategic investments, merger and acquisition opportunities 10,000 22.72
Expansion Enhancement of digital infrastructure 3,800 8.63
Working capital Working capital 11,720 26.63
Listing expenses Estimated listing expenses 4,500 10.22
Total 44,020 100
Analyst Highlights
Date Analyst Highlights
07-Oct-2025
RHB
  • Verdant Solar holds a 10.9% market share in Malaysia's residential new-build solar PV installations as of 2024.
  • Ongoing growth in Malaysia's property sector provides a structural tailwind for solar adoption.
06-Oct-2025
Mplus
06-Oct-2025
TA
06-Oct-2025
Public Invest
  • Potential inorganic growth through strategic investments, mergers and acquisitions opportunities in Malaysia.
Utilisation of Proceeds
Business Segments
Geographical Segments
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
SWOT Analysis
Strengths
  • Explosive financial growth with revenue and PAT compounding strongly over the last four financial years, driven by the increasing adoption of solar PV systems.
  • Holds a significant market share of 10.9% in the residential new-build solar PV installation market in Malaysia for the period of January to December 2024.
  • Highly diversified customer base primarily consisting of individual homeowners, mitigating concentration risk as no single customer contributes more than 10% of revenue.
  • Clear growth strategy with IPO proceeds allocated for expansion, including establishing new branches in Melaka, Kuantan, and Ipoh, and pursuing strategic M&A opportunities.
Weaknesses
  • High revenue concentration in the EPCC services for the residential solar PV segment, which accounted for 95.45% of total revenue in FY2025, making the company vulnerable to shifts in this specific market.
  • Business is project-based, leading to potential revenue volatility and a relatively short-term order book (RM31.13 million or 0.28x of FY2025 revenue), although this reflects a fast project-turnaround model.
  • Dependent on the performance and quality of third-party subcontractors for the installation and commissioning of solar PV systems.
Opportunities
  • Strong government support for renewable energy through initiatives like the National Energy Transition Roadmap (NETR), Solar for Rakyat Incentive Scheme (SolaRIS), and the upcoming Solar Accelerated Transition Action Programme (Solar ATAP).
  • Growing demand for electricity and increasing awareness of environmental sustainability are driving long-term adoption of solar PV systems among residential, commercial, and industrial users.
  • Opportunity to expand into the commercial and industrial (C&I) and large-scale solar (LSS) segments through strategic M&A, leveraging IPO proceeds to diversify revenue streams.
Threats
  • High dependency on the continuation of government policies, incentives, and supportive regulatory frameworks; any adverse changes or discontinuation of these programs could significantly reduce demand.
  • Faces competition from approximately 313 other SEDA-registered PV service providers in a competitive solar PV EPCC services industry.
  • Exposure to foreign exchange fluctuations as a majority of materials (solar panels, inverters) are procured from foreign suppliers in USD and RMB.
Key Highlights

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Conclusion

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