Company Background

The company was incorporated in Malaysia under the Act on 25 May 2021 as a private limited company under the name of Sunview Group Sdn Bhd and was subsequently converted into a public limited company on 24 December 2021. Sunview is an investment holding company. Through the subsidiaries, the company is principally involved in the EPCC of solar PV facilities, solar PV construction, and installation services, solar power generation and supply as well as associated services and products.

The Group’s current corporate structure is illustrated below:

The principal activities of the subsidiaries are as follows:

Use of proceeds

1. Business expansion - 4.88% (within 24 months)
2. Capital expenditure - 5.42% (within 18 months)
3. Working capital - 58.72% (within 24 months)
4. Repayment of bank borrowings - 20.46% (Within 3 months)
5. Estimated listing expenses - 10.52% (within 1 month)

Business expansion - 4.88% (within 24 months)

The company intends to allocate RM 1.67 million, representing approximately 4.88% of the gross proceeds from the Public issue, to set up new offices in Johor, Malaysia to better serve the new and existing customers, establish new complementary products for solar PV power applications as well as for marketing activities.

The breakdown of the business expansion costs is as follows:

Capital expenditure - 5.42% (within 18 months)

The company intends to allocate approximately RM 1.86 million, representing approximately 5.42% of the gross proceeds from the Public Issue, to purchase mechanical equipment, IT-related systems, and electrical equipment over 18 months from the Listing date. The purchase of mechanical equipment, IT-related systems, and electrical equipment will support the existing and new EPCC projects. The breakdown of the said purchases is as follows:

Working capital - 58.72% (within 24 months)

Approximately RM20.10 million, representing approximately 58.72% of the gross proceeds from the Public Issue, has been earmarked to supplement the working capital requirements of the Group. The Group’s working capital requirements are expected to increase in tandem with the expected growth in the business. The breakdown of which is as follows:

Repayment of bank borrowings - 20.46% (Within 3 months)

The company intends to allocate RM 7.00 million, representing approximately 20.46% of the gross proceeds from the Public Issue, to pare down part of the Group’s outstanding borrowings. The details are as set out in the table below:

The repayment of the above-mentioned borrowings is expected to have a positive financial impact on the Group with interest savings of approximately RM 0.43 million per annum based on existing prevailing interest rates of 6.17% for the term loan. However, the actual interest savings may vary depending on the applicable interest rate.

Business model

The business model is as follows:

The company is involved in renewable energy principally in the provision of solar PV construction-related services, as well as the solar power generation and supply as follows:

• EPCC of solar PV facilities: The company carries out EPCC for solar PV facilities providing end-to-end service from engineering design, planning and procurement, construction and installation up to testing and commissioning.
• Construction and installation of solar PV facilities: The company also provides construction and installation for solar PV facilities including LSS PV facilities projects, as a subcontractor of EPCC contractors. The company is involved in site clearance and management, M&E, piling assembly and installation of mounting systems, and installation of solar PV modules and related electrical and communications equipment and systems.
• Associated services and products: They also provide associated services and products to complement the core services in EPCC, and construction and installation services. This includes the provision of solar PV consulting and engineering services, O&M services, as well as supply of related equipment and ancillary construction materials such as PV module mounting systems and gutters. Solar PV consulting and engineering services include the preparation and submission of documentation to authorities, facility audit and site surveys, and providing seminars and trading services.
• Solar power generation and supply: In 2019, the company embarked on being an asset owner of solar PV facilities to generate and supply solar power through Solarcity REIT. OWing solar PV facilities enable them to generate recurring revenue to supplement its project base revenue streams.

Click here to continue the IPO - Sunview Group Berhad (Part 2)

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