Founder Group Limited Announces Pricing of Initial Public Offering

Rhea-AI Summary

Founder Group (FGL), a Malaysian EPCC solutions provider for solar PV facilities, has announced the pricing of its initial public offering. The company is offering 1,218,750 ordinary shares at $4.00 per share, aiming to raise $4.875 million in gross proceeds before deductions. Trading will commence on Nasdaq Capital Market on October 23, 2024, under the symbol 'FGL'. The company has granted underwriters a 45-day option to purchase up to 182,813 additional shares. US Tiger Securities is serving as the sole underwriter, with the offering expected to close around October 24, 2024.

Positive

• IPO will raise $4.875 million in gross proceeds
• Listing on Nasdaq Capital Market provides access to broader capital markets
• Company operates in growing solar PV sector

Negative

• Relatively small IPO size may limit market liquidity
• Potential dilution from over-allotment option of 182,813 additional shares
• Offering proceeds subject to underwriting discounts and expenses

Insights

IPO Analyst

This Malaysian solar EPCC company's IPO reveals some concerning metrics. The $4.875 million raise at $4.00 per share is notably small for a Nasdaq listing, suggesting institutional interest. The modest size and the inclusion of an over-allotment option for just 182,813 additional shares indicates potential liquidity challenges ahead.

The choice of US Tiger Securities as the sole underwriter, rather than a more established investment bank, could impact post-IPO support and market-making capabilities. While the solar sector presents growth opportunities, especially in Malaysia's developing market, the minimal capital raise may limit the company's ability to scale operations and compete effectively.

Clean Energy Market Analyst

Malaysia's solar market presents significant growth potential, with the government targeting 31% renewable energy capacity by 2025. However, FGL enters a competitive EPCC landscape where larger, well-capitalized players dominate. The IPO proceeds may constrain their ability to bid on major projects, which often require substantial working capital and performance bonds.

The company's pure-play focus on solar EPCC could be both a strength and weakness - while it allows for specialized expertise, it also exposes them to sector-specific risks and policy changes in a single market.

SELANGOR, Malyasia, Oct. 22, 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 pricing of its 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, before deducting underwriting discounts and offering expenses. In addition, the Company has granted the underwriters a 45-day option (the “Over-Allotment Option”) to purchase up to an additional 182,813 ordinary shares at the initial public offering price, less underwriting discounts.

The ordinary shares are scheduled to begin trading on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol “FGL”. The Offering is expected to close on or about October 24, 2024, subject to customary closing conditions.

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

The Offering is being 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 is being 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, when available, 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, including but not limited to, the Company’s proposed Offering. 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 Contact:
Eric Lee
Chief Executive Officer
Telephone +03-3358 5638
Email: ericlee@founderenergy.com.my

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

Investor Relations Inquiries:
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 is the IPO price for Founder Group (FGL) shares?

Founder Group (FGL) has priced its IPO at $4.00 per ordinary share.

How many shares is FGL offering in its IPO?

FGL is offering 1,218,750 ordinary shares, with an additional over-allotment option of 182,813 shares.

When will FGL start trading on Nasdaq?

FGL shares are scheduled to begin trading on the Nasdaq Capital Market on October 23, 2024.

How much money is FGL raising in its IPO?

FGL aims to raise $4.875 million in gross proceeds before deducting underwriting discounts and offering expenses.