(from left): Solar District Cooling Group Bhd independent non-executive director Wong Poh May, independent non-executive director Wong Kei Fai, independent non-executive director Raja Nor Azlina Binti Raja Azhar, managing director Edison Kong, executive director Eileen Liuk, independent non-executive chairman Khairul Azmy Bin Kamaluddin and Mercury Securities Sdn Bhd managing director Chew Sing Guan.
PETALING JAYA: Solar District Cooling Group Bhd (SDCG), which debuted on the ACE Market yesterday with a 32% premium over its initial public offering (IPO) price, is optimistic about the prospects for building management systems (BMS) and the energy-saving industry in Malaysia.
Managing director Edison Kong said while Malaysia’s energy costs are relatively low compared to global standards, they are likely to rise in the future.
“As such, the need for energy efficiency solutions will always be there,” he said during a press conference following the group’s listing.
Kong added the government’s green incentives in Budget 2024 and likely in Budget 2025 would support the industry’s growth. He said SDCG’s BMS and solar thermal solutions are crucial in helping clients reduce energy consumption and operating costs.
“By optimising energy use in buildings and incorporating renewable energy sources, our solutions will not only improve efficiency but also deliver long-term savings,” Kong said.
“This benefit puts our group in a strong position to help clients navigate the changing energy landscape while reducing their carbon footprint.”
On Wednesday, SDCG secured two contracts totalling RM8.13mil, raising its unbilled order book to over RM30mil.
“This provides a strong foundation for our future revenue. We are actively tendering for projects across various industries, including commercial buildings, financial services, healthcare, industrial properties, hotels and data centres,” he said.
Kong added such buildings had significant energy needs and with its experience in BMS and solar thermal solutions, he is confident that such facilities can improve their energy efficiency and reduce operating costs.
“We see growing demand in this sector, which very much aligns with our capabilities in delivering energy saving solutions,” he added.
Although SDCG does not have a fixed dividend policy, Kong assured the company would reward shareholders when cash flow permits.
“Whenever we have a healthy cash flow, we will definitely reward our shareholders,” he said.
Looking ahead, SDCG aims to continue delivering growth, innovation and new technologies to the market.
SDCG shares opened at 50 sen a share on its maiden trading day on Bursa Malaysia. While it reached a high of 56 sen, the share closed at 50.5 sen, a 32.9% premium on its 38-sen IPO price, giving it a market cap of RM214mil.
SDCG raised RM45.9mil from its listing. About 41.5% of the proceeds or RM18.7mil has been allocated for purchasing materials.
Additionally, 28.1% or RM12.67mil will go towards general working capital requirements while 11.1%, or RM5mil, is earmarked for tender bonds for future projects.
Capital expenditure will account for RM2.52mil or 5.6% of the proceeds.
Separately, RM1.9mil or 4.2% will be used for expanding the company’s headquarters. The remaining 9.5%, or RM4.3mil, will be used to cover listing expenses.
