Founder Group Limited Announces Closing of Initial Public Offering

Rhea-AI Summary

Founder Group (FGL), a Malaysian solar PV facilities EPCC solutions provider, has successfully completed its initial public offering. The company offered 1,218,750 ordinary shares at $4.00 per share, raising total gross proceeds of $4.875 million. Trading commenced on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol 'FGL'. US Tiger Securities served as the sole underwriter for the offering, which was conducted following SEC registration statement approval on September 30, 2024.

Positive

• Successfully completed IPO raising $4.875 million in gross proceeds
• Achieved Nasdaq Capital Market listing
• Strategic positioning as pure-play end-to-end solar PV solutions provider

Negative

• Relatively small IPO size might limit market impact and trading liquidity
• Potential shareholder dilution from new share issuance

Insights

Financial Analyst

The successful IPO of Founder Group marks a significant milestone for Malaysia's solar EPCC sector. The $4.875 million raised through the offering of 1,218,750 shares at $4.00 per share provides important growth capital, though the relatively modest size suggests a measured approach to market entry. The listing on Nasdaq provides enhanced visibility and access to U.S. capital markets, which could facilitate future fundraising efforts.

The timing aligns with growing demand for solar infrastructure in Southeast Asia, particularly Malaysia's push toward renewable energy targets. However, investors should note that as a pure-play EPCC provider, FGL's revenue may be project-dependent and cyclical. The successful listing during challenging market conditions demonstrates investor confidence in the renewable energy sector, though the company will need to prove its execution capabilities to justify its valuation.

SELANGOR, Malaysia, Oct. 24, 2024 (GLOBE NEWSWIRE) --  Founder Group Limited (“FGL” or the “Company”), a pure-play, end-to-end engineering, procurement, construction and commissioning (EPCC) solutions provider for solar PV facilities in Malaysia, today announced the closing of its previously announced initial public offering (the “Offering”) of an aggregate 1,218,750 ordinary shares at a public offering price of $4.00 per share for total gross proceeds of $4.875 million to the Company, before deducting underwriting discounts and offering expenses. The shares began trading on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol “FGL.”

US Tiger Securities, Inc. (“US Tiger”) acted as sole underwriter for the Offering. Hunter Taubman Fischer & Li LLC acted as U.S. legal counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as U.S. legal counsel to US Tiger.

The Offering was conducted pursuant to the Company’s registration statement on Form F-1 related to the Offering, as amended (File No. 333-281167), which was filed with the United States Securities and Exchange Commission (the “SEC”) and was declared effective on September 30, 2024. The offering of the securities was made only by means of a prospectus forming a part of the registration statement. Electronic copies of the final prospectus relating to the Offering may be obtained by visiting the SEC’s website located at http://www.sec.gov or by contacting US Tiger Securities, Inc. at 437 Madison Avenue, 27th Floor, New York, New York 10022, or by telephone at +1 646-978-5188.

This press release has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy the Company’s securities, nor shall there be any offer, solicitation, or sale of such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Founder Group Limited

Founder Group Limited is a pure-play, end-to-end EPCC solutions provider for solar PV facilities in Malaysia. The Company’s primary focus is on two key segments: large-scale solar projects and commercial and industrial (C&I) solar projects. The Company’s mission is to provide customers with innovative solar installation services, promote eco-friendly resources and achieve carbon-neutrality.

For more information on the Company, please log on to https://www.founderenergy.com.my/.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the registration statement on Form F-1 related to the Offering, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Contact Information:

Founder Group Limited:
Eric Lee
Chief Executive Officer
Telephone +03-3358 5638
Email: ericlee@founderenergy.com.my

Underwriter:
US Tiger Securities, Inc.
437 Madison Avenue, FL 27
New York, NY 10022
Email: ECM@ustigersecurities.com

Investor Relations:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

FAQ

What was FGL's IPO price per share?

FGL's IPO price was $4.00 per share.

How many shares did FGL offer in its IPO?

FGL offered 1,218,750 ordinary shares in its IPO.

When did FGL stock begin trading on Nasdaq?

FGL stock began trading on the Nasdaq Capital Market on October 23, 2024.

How much did FGL raise in its IPO?

FGL raised total gross proceeds of $4.875 million in its IPO.