Investment & Market Trends

KUALA LUMPUR, Verdant Solar Holdings Bhd (Verdant) is set to raise RM44.02 million through its initial public offering (IPO) ahead of its ACE Market debut on Bursa Malaysia Securities Bhd, scheduled for Oct 22, 2025. The IPO involves the issuance of 142 million new ordinary shares at RM0.31 each. Of this, 40.88 million shares will be offered to the public, 25 million shares to eligible persons, and 76.12 million shares via private placement. Verdant plans to allocate 31.8% of the proceeds to establish new branch offices to enhance customer service, 22.72% for expansion through strategic investments, mergers, and acquisitions, and 8.63% to improve its digital infrastructure and operational capabilities. The remainder will be used for general working capital and listing-related expenses. During the IPO prospectus launch, managing director Lim Tzer Haur highlighted that Verdant currently holds a 10.9% market share in Malaysia’s residential solar photovoltaic sector. He said the IPO proceeds would help the company expand its footprint beyond the Klang Valley, with new branches planned in Melaka, Kuantan, and Ipoh. Lim also noted that the funds will support strategic investments and acquisitions, all aimed at improving operational efficiency and broadening Verdant’s core services. He pointed to the surge in property transactions and growing demand for green energy as key drivers for the company’s growth in Malaysia’s solar EPC (engineering, procurement, construction, and commissioning) market. “Verdant is well-positioned to capitalise on the expanding market and installation opportunities, and we are optimistic about the company’s growth prospects, supported by our competitive strengths,” Lim said. Regarding dividends, Lim explained that the company’s current priority is using the IPO proceeds for growth initiatives. Any dividend decisions will be situational, based on what is in the best interest of shareholders at the time. Applications for Verdant’s IPO open today (Sept 29) and will close at 5 pm on Oct 7, 2025. Mercury Securities Sdn Bhd serves as the IPO’s principal adviser, sponsor, sole underwriter, and sole placement agent.

KUALA LUMPUR, DGB Asia Bhd (KL:DGB), a provider of software and engineering solutions, has proposed a capital reduction exercise to cancel RM197 million of its issued share capital that is lost and not backed by assets. According to a Bursa Malaysia filing, the resulting RM197 million credit from the cancellation will be applied to offset the company’s accumulated losses. As of Sept 10, 2025, DGB Asia’s total issued share capital stood at RM240,336,110, comprising 278,243,279 ordinary shares. The company also has 52,272,900 outstanding share issuance scheme (SIS) options, and the board has committed not to grant any additional SIS options until the capital reduction is completed. “The proposed capital reduction will help the company and group streamline their financial position by lowering accumulated losses. This is expected to strengthen credibility with bankers, customers, suppliers, and investors,” DGB Asia said. The company added that the exercise will not have any significant impact on the group’s earnings or earnings per share for the financial year ending Dec 31, 2025.

PETALING JAYA, Creditor banks including Malayan Banking Bhd (Maybank), CIMB Group Holdings Bhd, and RHB Bank Bhd are set to record earnings gains from the restructuring of Vantris Energy Bhd, formerly known as Sapura Energy Bhd. Maybank ended up with a 20.27% stake in Vantris Energy following the execution of its restructuring scheme. The oil and gas services provider recently completed its regularisation plan to exit Practice Note 17 (PN17) status, which saw Maybank, CIMB, and RHB emerge as major shareholders of the rebranded company. In a research note, MBSB Research estimated that the restructuring could contribute as much as 2.3% to the creditor banks’ earnings in the current financial year. It said the banks are expected to recognise contributions from settlement shares, which were issued at 80 sen apiece. Based on Vantris’ current market price of 53 sen per share, MBSB calculated that the proceeds translate into an uplift of between 1.5% and 2.3% of net profit this year. The research house added that Maybank is expected to enjoy the “largest absolute impact” as it emerged with a 20.27% stake in Vantris following the restructuring. In a filing with Bursa Malaysia last Friday, Maybank disclosed that Vantris had issued 462.45 million new shares and 498.48 million redeemable convertible unsecured Islamic debt securities (RCUIDS) to the bank and its subsidiary Maybank Islamic Bhd. This issuance formed part of the settlement of liabilities owed by Sapura TMC Sdn Bhd, a wholly owned subsidiary of Vantris. Similarly, CIMB Group revealed that its subsidiaries also received securities under the exercise. CIMB Bank Bhd was allotted 208.93 million shares and 225.21 million RCUIDS, while CIMB Islamic Bank Bhd received 67.73 million shares and 73.01 million RCUIDS. Combined, CIMB now holds a 12.13% stake in Vantris. Meanwhile, RHB Bank Bhd announced that its subsidiary, RHB Islamic Bank, was issued 164.56 million shares and 177.39 million RCUIDS, giving the group a 7.21% indirect stake in Vantris. MBSB noted that other listed creditors, such as AMMB Holdings Bhd (AMMB), did not make announcements, likely because their holdings fell below the 5% threshold required for disclosure. Exit from PN17 Vantris, which slipped into PN17 status in 2022 due to financial distress, obtained regulatory approval in June for its regularisation plan. The plan includes a 99.99% capital reduction to offset accumulated losses and a 20-to-one share consolidation to streamline the number of shares in circulation. It also involves a large-scale debt restructuring exercise that will slash total borrowings from RM10.8 billion to RM5.6 billion, reducing annual interest expenses by more than RM500 million, or about 60%. Additionally, the Ministry of Finance, via Malaysia Development Holding Sdn Bhd (MDH), will inject RM1.1 billion through redeemable convertible loan stocks (RCLS). Proceeds from this subscription will go towards settling outstanding debts owed to Malaysian oil and gas vendors. Upon full conversion of the RCLS, MDH could emerge as Vantris’ single largest shareholder with a stake of more than 33%, overtaking Permodalan Nasional Bhd (PNB), whose shareholding may be diluted to just above 5%. Vantris’ shares closed 3.5 sen higher, or 6.6%, at 56 sen yesterday, valuing the company at RM1.29 billion.

KUALA LUMPUR, Ekovest Bhd and its major shareholder, Tan Sri Lim Kang Hoo, have once again agreed to extend the deadline to finalise the proposed acquisition of Credence Resources Sdn Bhd (CRSB), pushing it from Oct 1, 2025, to Oct 29, 2025. In a filing with Bursa Malaysia today, the company said the latest extension was necessary to allow both parties additional time to deliberate on the structure of the deal and to continue discussions and negotiations on the terms of the definitive agreement. Ekovest noted that this is not the first extension granted for the deal. The company has revised the timeline on several occasions, with the most recent extension made on Sept 30, 2025. Each extension, it said, reflects the complexity of the negotiations and the need to ensure that all stakeholders’ interests are taken into account before a binding agreement is finalised. The proposed acquisition, first announced on Oct 28, 2023, involves the purchase of a 70% stake in CRSB for a total consideration of RM1.15 billion. If completed, the transaction would significantly strengthen Ekovest’s position in the infrastructure and property development sectors, while also broadening its investment portfolio. Industry observers view the acquisition as a strategic move for Ekovest, which has been expanding its footprint in large-scale infrastructure projects and urban development initiatives. CRSB is expected to complement Ekovest’s existing businesses and potentially unlock synergies that could enhance long-term growth prospects. Ekovest added that it remains committed to completing the proposed acquisition despite the multiple extensions. The group emphasised that the decision to extend the deadline underscores its cautious and deliberate approach, ensuring that the terms of the deal are aligned with the company’s financial and strategic objectives. The company assured shareholders that further updates on the progress of the proposed acquisition would be announced in due course.

KUALA LUMPUR, Gagasan Nadi Cergas Bhd has obtained government approval to proceed with a partial acquisition of Konsortium PAE Sepakat Sdn Bhd (KPSSB), which manages hostel facilities across seven polytechnic campuses, instead of a full takeover as originally planned. The Public Private Partnership Unit (Ukas) of the Prime Minister’s Department has allowed the group to acquire 45% of Seri Delima Anggun Sdn Bhd (SDASB) and 100% of Serata Ehsan Sdn Bhd (SESB), according to the company’s filing on Thursday. SESB owns a 44.4% stake in KPSSB, while SDASB controls the remaining 55.6%. With the approved deal, Gagasan Nadi will hold an effective 69.75% stake in KPSSB. The balance 30.25% will remain under a Bumiputera shareholder due to the partial stake approval. “The board will review the implications of Ukas’ decision and decide on the next course of action regarding the proposed acquisitions. Further updates will be announced in due course,” the company said. Originally, Gagasan Nadi had proposed acquiring SESB for RM80 million from Chong Ngu Chong and Lim Eng Keong, and SDASB for RM105 million from Zulkifli Abdul. KPSSB, through special purpose vehicles, secured 23-year concession agreements in 2013 to develop and manage student hostels at campuses in Banting, Ipoh, Port Dickson, Johor Bahru, Seberang Prai, Jeli and Kota Bahru. The deal is expected to strengthen Gagasan Nadi’s concession and facilities management portfolio, which already covers student accommodation at International Islamic University Malaysia in Kuantan and Universiti Teknikal Malaysia Melaka. Shares of Gagasan Nadi closed half a sen lower at 40 sen on Thursday, giving the company a market value of RM297.44 million.

Copper prices retreated after hitting their highest level in over a year, pressured by a stronger US dollar as markets weighed the fallout from supply disruptions at Freeport-McMoRan Inc’s Grasberg mine in Indonesia. The dollar index climbed to its strongest since Sept 5, boosted by upbeat US jobless claims and second-quarter growth data, making commodities like copper more expensive for non-dollar buyers. Freeport-McMoRan Inc’s Grasberg mine in Indonesia. Two workers were killed while another five were missing in an underground tunnel accident at the Grasberg mine. On the London Metal Exchange (LME), copper futures slipped as much as 0.8% after earlier rising 1.4%. The pullback followed Wednesday’s surge, when Freeport trimmed its copper and gold sales outlook after five workers went missing in a tunnel accident at its Grasberg site, where two fatalities were confirmed. “This adds more uncertainty to the supply picture, from current production to future projects,” said Craig Lang, principal analyst at CRU International Ltd. “It’s hard to quantify the exact impact, but it will likely keep upward pressure on prices.” Copper remains about 7.5% below its May 2024 record high. Market stress is showing in LME spreads, with December contracts trading up to US$69 (RM290) a tonne higher than those maturing a year later — a backwardation that signals strong demand outpacing supply. The Grasberg disruption is the latest in a series of setbacks, with Hudbay Minerals suspending operations in Peru amid protests, and earlier output issues at mines owned by Ivanhoe Mines Ltd and Codelco. UBS analysts reiterated a bullish outlook, noting Grasberg’s force majeure will deepen expected deficits next year. Macquarie estimates a hit of around 210,000 tonnes in the second half of 2025, while Goldman Sachs now sees global copper supply rising just 0.2% this year. “US$10,000 was once seen as a ceiling for copper, but with mounting supply risks, it’s starting to look more like a floor,” said Nour Al Ali, strategist at Bloomberg. “Europe and Asia are particularly exposed, given large volumes of copper were diverted to the US earlier this year on tariff concerns.” As of 10.27am London time, copper was down 0.6% at US$10,275 a tonne, still up about 17% year-to-date. Other base metals traded mixed, with nickel edging 0.2% higher and zinc slipping 0.3%.

KUALA LUMPUR, RHB Investment Bank Bhd (RHB IB) projects that Budget 2026 will allocate between RM86 billion and RM89 billion for development expenditure, in line with the 13th Malaysia Plan’s (13MP) total RM430 billion allocation for 2026-2030. In a note, RHB IB said the government’s top priority will be enhancing regional connectivity to reduce development disparities across Peninsular Malaysia, Sabah, and Sarawak, promoting more balanced growth. The bank added that subsidy rationalisation, particularly for RON95 petrol, is expected to continue, ensuring support reaches those most in need while minimising fiscal leakages. “This targeted approach reflects efforts to balance social protection with fiscal sustainability,” RHB IB noted. Budget 2026 is also likely to focus on improving Malaysia’s competitiveness, attracting quality foreign direct investment (FDI), and supporting micro, small, and medium enterprises (MSMEs). Policies encouraging innovation, regulatory efficiency, and ease of doing business are expected to be introduced. Targeted incentives may be provided for priority sectors driving growth and technology adoption, including renewable energy, digitalisation, electrical and electronics (E&E), advanced manufacturing, and agriculture. RHB IB highlighted three critical sectors for investors in the medium term: rare earth elements, E&E, and Islamic finance innovation, noting their high growth potential under 13MP frameworks, international collaboration, and significant investment commitments. The bank concluded that Budget 2026 will be a key tool in steering Malaysia toward sustainable and inclusive growth amid global uncertainties. Anchored in the 13MP and MADANI Economy framework, the budget aims to balance short-term fiscal prudence with long-term strategic investments. With a projected budget deficit of 3.5 per cent of GDP in 2026, narrowing to 3.2 per cent in 2027, the government signals its commitment to fiscal consolidation while maintaining flexibility to support economic growth.

CEBU, AirAsia is setting its sights on capturing up to 45 per cent of Malaysia’s total aviation market and 70 per cent of the domestic segment within the next two years, driven by fleet expansion and international growth plans. AirAsia Aviation Group chief commercial officer Amanda Woo said the airline currently commands about 41 per cent of Malaysia’s overall market and 60 per cent domestically. “With additional capacity and new aircraft deliveries, we are confident of increasing our overall share to 45 per cent and our domestic share to 70 per cent,” she told Bernama at the relaunch of AirAsia’s direct flight between Kuala Lumpur and Cebu, the Philippines, on Tuesday. Woo said AirAsia has fully restored its capacity across ASEAN and India after the COVID-19 pandemic and is now pushing into new markets. “This year we launched flights to Karachi (Pakistan) and Tashkent (Uzbekistan), with Istanbul next on the roadmap. We are also exploring the Gulf region as a key hub to connect Kuala Lumpur with Europe, including London,” she said. She added that the expansion aligns with AirAsia’s multi-hub strategy and its goal of positioning Kuala Lumpur as the group’s mega hub, offering seamless connectivity within ASEAN and beyond. “Malaysia remains our core market, and we want Kuala Lumpur to stand out as the preferred hub. With more aircraft coming in, we are confident of boosting our presence both locally and internationally,” Woo said.

KUALA LUMPUR, CBH Engineering Holding Bhd’s (CBHB) wholly-owned unit, CBH Engineering Sdn Bhd, has clinched a RM31.4 million contract for mechanical and electrical works at a proposed data centre in Johor. The company said it accepted the letter of award, dated Aug 25, 2025, from the project’s main contractor, identified as Company A under a non-disclosure agreement. Under the contract, CBH Engineering will supply, install, test and commission works for a 132 kilovolt (kV) consumer landing station (CLS) at the upcoming facility. The project is scheduled to run from Sept 7, 2025, until its expected energisation date on March 10, 2026. CBHB said the contract is expected to boost its earnings, earnings per share and net assets over the project’s duration. It added that no directors, major shareholders or connected parties have any interest in the deal, which the board considers to be in the ordinary course of business and in the company’s best interest.

KUALA LUMPUR, ITMAX System Bhd’s shares traded higher this morning after its 65 per cent-owned unit, Southmax Sdn Bhd, secured a RM51 million contract from the Batu Pahat Municipal Council. As of 11 am, the counter rose 5.0 sen to RM4.48, with 603,900 shares changing hands. Hong Leong Investment Bank Bhd (HLIB) said in a note that this marks ITMAX’s sixth CCTV contract win in Johor, involving the installation of about 200 cameras. “Looking ahead, ITMAX is well-positioned to secure more council projects, especially with Johor moving towards a single system policy. We maintain our ‘buy’ call with a target price of RM5.71,” HLIB said. So far, ITMAX has secured CCTV contracts with six councils in Johor — Johor Bahru, Iskandar Puteri, Pasir Gudang, Pengerang, Kulai, and Batu Pahat. The group is also eyeing additional projects in towns such as Kluang and Muar. HLIB added that demand is also growing within existing council areas. For example, Johor Bahru started with 500 units but has since requested an expansion to support smart city infrastructure in the special economic zone. The city’s own study estimates a need for around 34,000 CCTV units.