Company: JS Solar Holding Berhad

Date of Prospectus: 28 August 2025

JS Solar Holding Berhad’s IPO: In-Depth Analysis of Malaysia’s Latest Solar EPCC Market Entrant

JS Solar Holding Berhad is launching its initial public offering (IPO) on the ACE Market of Bursa Malaysia, positioning itself as a notable player in the solar engineering, procurement, construction, and commissioning (EPCC) segment. This article delivers a comprehensive, fact-driven breakdown of the IPO, including offer structure, financials, use of proceeds, risk factors, management, and outlook — providing investors and market watchers with actionable intelligence based solely on disclosed information.

IPO Snapshot: Structure, Offer Price, and Share Allocation

JS Solar Holding Berhad (IPO Symbol: Not Disclosed) is offering 97,500,000 shares at an IPO price of RM0.31 per share, targeting a post-IPO enlarged share capital of 325,000,000 shares and a market capitalization of RM100,750,000 upon listing. The IPO consists of both a public issue and an offer for sale, with explicit allocations for the Malaysian public, eligible persons, and selected investors via private placement.

No minimum subscription is required, but the company must achieve at least 25% public shareholding spread with a minimum of 200 public shareholders holding not less than 100 shares each for listing eligibility. There is no price stabilization or over-allotment (greenshoe) option for this IPO.

Use of Proceeds: Funding Expansion and Deleveraging

The IPO is set to raise RM24.18 million in gross proceeds, with a clear focus on strengthening the company’s balance sheet and operational footprint:

• RM12.72 million (52.61%) for repayment of bank borrowings, signaling a significant deleveraging effort.
• RM3.20 million (13.23%) for regulatory fees and renovation costs for a new corporate office in Petaling Jaya.
• RM1.55 million (6.39%) for business expansion and marketing, including sales/support offices in Johor and Sabah.
• RM2.52 million (10.40%) allocated for working capital.
• RM4.20 million (17.37%) for listing expenses (professional fees, authorities, underwriting/placement/brokerage, printing, advertising).

Proceeds from the offer for sale (RM6.05 million) accrue solely to the selling shareholders.

Investor Participation and Book Quality

IPO allocation is diversified across public, eligible insiders, and private placements. The balloted public tranche is split evenly between Bumiputera and non-Bumiputera investors. The “Pink Form” allocation for eligible directors, employees, and contributors totals 19,500,000 shares. The private placement to selected investors accounts for the largest single tranche.

No specific names of institutional or anchor investors, nor oversubscription rates by tranche, are disclosed. The underwritten public and employee tranches are fully covered by TA Securities, implying a baseline of demand and book support.

Deal Parties and Structure

Key parties to the IPO include:

• Principal Adviser, Sponsor, Underwriter, and Placement Agent: TA Securities Holdings Berhad
• Financial Adviser: Eco Asia Capital Advisory Sdn Bhd

Underwriting is limited to the public and eligible person allocations (35,750,000 shares), while private placement tranches are not underwritten. There is no price stabilization or greenshoe option. The clear role assignment and full underwriting of retail tranches suggest professional execution and support for listing day liquidity.

Company Overview: Business Model and Market Position

JS Solar Holding Berhad operates as an investment holding company with its subsidiaries primarily engaged in:

• Engineering, Procurement, Construction, and Commissioning (EPCC) services for solar PV systems
• Contracting services for solar PV projects
• Operations and Maintenance (O&M) services, recently separated as a reporting segment

Revenue streams are derived from project-based contracts, with historical focus on residential, commercial & industrial (C&I), and utility-scale solar projects. As of the latest practicable date, JS Solar has delivered projects totaling 376.26 MWp, including floating solar and battery energy storage systems (BESS), highlighting technical breadth and regulatory familiarity.

Key customers include major industry players, notably GSPARX (subsidiary of Tenaga Nasional Berhad), which contributed between 22.49% and 72.53% of group revenue during the last four financial years.

Industry, Sector Trends, and Timing

The company operates in Malaysia’s rapidly growing solar PV sector, serving both the C&I and utility-scale markets. Industry dynamics are driven by government incentives, rising ESG adoption, and the national push for renewable energy. JS Solar’s regional expansion into Johor and Sabah aims to capture broader geographic demand.

Key IPO dates:

• Offer opens: 28 August 2025, 10:00 a.m.
• Offer closes: 9 September 2025, 5:00 p.m.
• Balloting: 11 September 2025
• Allotment: 19 September 2025
• Listing: 23 September 2025

The timing aligns with ongoing national renewable energy initiatives and sector tailwinds.

Financial Health: Multi-Period Performance

The company has demonstrated robust revenue growth and margin expansion, though historical profitability is heavily project-driven and concentrated with a major customer.

As at the latest practicable date, bank borrowings stood at RM46.24 million. A significant portion of IPO proceeds is allocated to deleveraging.

Market Position, Competitive Advantages, and Key Customers

JS Solar’s competitive strengths include:

• Proven track record in multiple solar segments, with projects across residential, C&I, and utility-scale solar, including floating and BESS installations.
• Strong regulatory and technical credentials, with relevant authority registrations for projects of varying scale.
• Repeat business and referrals from customers and consultants, reflecting positive brand recognition within the industry.
• Deep familiarity with local solar programme mechanisms and regulations.

Revenue concentration risk is present, with GSPARX contributing between 22.49% and 72.53% of group revenue over the last four years.

Management Team and Governance

Key management and board members include:

• Managing Director: Chai Jeun Sian (14.70% post-IPO holding, after offer for sale)
• Chief Financial Officer: Yee Chai Yin (60,000 shares post-IPO via Pink Form Allocation)
• Chief Technical Officer: Lim Jun Ming (1.52% post-IPO holding)
• General Manager: Lee Pek Fang (55,000 shares post-IPO via Pink Form Allocation)
• Independent Directors: Datuk Ir. Ahmad Fauzi Bin Hasan, Wendy Kam, Chan Chee Woei, Wong Phait Lee

The board and management structure are designed to support operational growth and expansion plans.

Dividend Policy

JS Solar does not currently have a fixed dividend policy. Future dividends will be subject to profits, working capital, and expansion needs, at the discretion of the Board. There are no legal or financial restrictions on dividend payout from subsidiaries, except for certain banking covenants.

Ownership Structure and Lock-Ups

Post-IPO shareholding is diversified, with material holdings by founders and pre-IPO investors. A moratorium applies to major shareholders (Specified Shareholders):

• Full lock-up for 6 months post-listing
• Next 6 months: At least 45% of issued shares remain under moratorium
• Subsequent years: Up to one-third of remaining shares can be sold per annum

Certain additional shareholders have also voluntarily placed their shares under moratorium.

Risk Factors

• Project-based revenue: Revenue and profit are highly dependent on securing new contracts, which are not recurring in nature. Historical results may not predict future performance.
• Customer concentration: GSPARX accounted for up to 72.53% of group revenue in FYE 2024.
• Subcontractor risk: Reliance on subcontractors exposes the company to potential delays, quality issues, and cost overruns.
• Execution risk: Delays or inability to complete projects on schedule can lead to liquidated damages, cost overruns, and cash flow pressure.
• Regulatory risk: Compliance with evolving energy regulations and licensing is critical for continued operation.
• Bumiputera equity compliance: The company must allocate 12.5% of its enlarged shares to approved Bumiputera investors within five years or upon meeting Main Market profit requirements.
• No fixed dividend policy: Investors should not expect regular payouts.

Growth Strategy

• Geographic expansion: Setting up sales/support offices in Johor and Sabah to capture new regional demand.
• Marketing investment: Allocating RM1.55 million to business development and marketing activities, including digital and event marketing.
• Operational scalability: Investment in a new headquarters to support business growth.
• O&M segment development: Establishment of a dedicated O&M department to provide recurring revenue from maintenance contracts.

Valuation and Peer Comparison

IPO Price-to-Earnings (P/E) multiple: 12.60x (based on FYE 2025 PAT of RM8.00 million and post-listing share base of 325 million).

Pro forma Net Asset per Share: RM0.12 (post-IPO).

Dilution to new investors: 61.29% (difference between IPO price and pro forma NA per share).

No peer financials or sector comparables are disclosed in the prospectus, so direct benchmarking is not provided.

Listing Outlook

Based solely on the prospectus data, JS Solar’s IPO offers:

• Strong revenue growth and margin expansion
• Clear deleveraging and operational expansion plans
• Diversified offering structure targeting institutional, retail, and employee investors
• Significant customer concentration and project-driven volatility
• No dividend commitment and material dilution for new investors

Given the absence of oversubscription data, anchor investor names, or peer performance tables, the book quality and first-day performance will hinge on the sector’s positive outlook and the company’s credible growth story. Investors should expect active trading and potential upside if sector momentum continues, but should remain aware of customer concentration and project risks. The IPO appears reasonably valued for the sector, with a likely first-day trading range closely tracking the RM0.31 offer price, with possible modest upside if market sentiment remains favorable.

Prospectus Access

Investors can view or download the prospectus at: www.bursamalaysia.com

How to Apply

Application period: 28 August 2025, 10:00 a.m. to 9 September 2025, 5:00 p.m.

Applications may be made via participating organizations, banks, the company, TA Securities, or Tricor Investor & Issuing House Services Sdn Bhd, subject to eligibility requirements. Application forms are not available in electronic format; refer to the website for full details.