Founder Group Limited Secures US$5 Million EPC Contract for a 5.5MW Solar Plant under Malaysia’s LSS5 PETRA Programme
Rhea-AI Summary
Founder Group (NASDAQ: FGL) secured a RM19.5 million (≈US$5 million) EPC contract to build a 5.5MW solar plant under Malaysia’s LSS5 PETRA programme. The scope covers design, construction, testing and commissioning, with a guaranteed MAAQ of 13,568.8 MWh for the first two years and commercial operation targeted for May 1, 2027.
The win takes place amid a 2,000 MW LSS5 tender and follows 121 approved LSS projects (6,228 MW), reinforcing Founder Group’s EPCC position in Malaysia’s expanding renewables market.
Positive
- RM19.5 million EPC contract secured
- 5.5MW project capacity awarded
- Guaranteed MAAQ 13,568.8 MWh for first two years
- Targeted commercial operation date: May 1, 2027
- LSS5 2,000 MW tender expands addressable market
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
FGL was down 6.8% while peers were mixed: FBGL up 10.6%, SKBL up 1.29%, SKK down 0.86%, WLGS down 5.58%, VATE down 5.38%. Momentum data show 4 peers down and 1 up, indicating stock-specific dynamics for FGL.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 09 | Solar EPCC contract | Positive | -4.7% | Won ~US$4.14M EPCC contract for 25.40MW CGPP solar project. |
| Mar 03 | Nasdaq compliance | Positive | -5.4% | Regained compliance with Nasdaq’s US$1.00 minimum bid price rule. |
| Feb 20 | Share deficiency notice | Negative | -15.9% | Nasdaq notice for not meeting 500,000 publicly held shares requirement. |
| Feb 06 | 100-for-1 share combo | Neutral | -27.5% | Approved 100-for-1 share combination to help regain Nasdaq compliance. |
| Nov 12 | Bid price deficiency | Negative | -2.9% | Nasdaq notice for failing to meet US$1 minimum bid price requirement. |
Recent positive corporate updates, including contract wins and Nasdaq compliance, were followed by negative price reactions, while regulatory deficiency notices tended to align with share price declines.
Over recent months, Founder Group has balanced growth news with listing challenges. It announced a 100-for-1 share combination and later reported both a minimum bid price deficiency and a minimum publicly held shares deficiency. In parallel, it regained compliance with Nasdaq’s bid-price rule and secured a 25.40MW utility-scale solar contract under the CGPP. Today’s new 5.5MW LSS5 contract continues the pattern of execution wins against a backdrop of listing and capital-structure overhang.
Market Pulse Summary
This announcement adds another meaningful project to Founder Group’s EPCC portfolio: a 5.5MW solar plant under Malaysia’s LSS5 PETRA programme, valued at about RM19.5 million. It follows a recent 25.40MW CGPP contract and comes as LSS initiatives have approved 121 projects totaling 6,228MW. Against recent Nasdaq listing challenges and a sizable convertible note financing, investors should monitor execution on these contracts, future awards, and any further listing or capital-structure developments.
Key Terms
megawatt-hours (mwh) technical
AI-generated analysis. Not financial advice.
KUALA LUMPUR, Malaysia, March 16, 2026 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic (PV) systems in Malaysia, today announced that it has secured a RM19.5 million (approximately US
The LSS5 programme, also known as Peralihan Tenaga SuRiA (PETRA), represents Malaysia’s largest solar tender to date. With a total generation quota of 2,000 megawatts (MW), LSS5 more than doubles the capacity offered in previous iterations, underscoring the accelerating momentum of the country’s renewable energy sector.
The rollout of LSS PETRA and LSS PETRA 5+ is a key component of Malaysia’s broader strategy to accelerate renewable-energy deployment under the Malaysia MADANI framework and the National Energy Transition Roadmap (NETR), supporting the nation’s target of achieving Net Zero emissions by 2050.
Since its inception in 2016, the LSS programme has been a major catalyst for Malaysia’s Renewable Energy (RE) industry. To date, approximately 121 Large Scale Solar (“LSS”) projects have been approved, representing a combined capacity of 6,228 MW and an estimated investment value exceeding RM21 billion.
Project Scope and it’s Deliverable
Under the newly-secured contract, the Founder Group will oversee the design, construction testing and commissioning of the 5.5 MW solar facility. The project is expected to deliver a guaranteed Maximum Annual Available Capacity (MAAQ) of 13,568.8 megawatt‑hours (MWh) during its first two years of operation. The project has committed to delivering a guarantee of Maximum Annual Available Capacity (MAAQ) guarantee of 13,568.8 megawatts- per hour (MWh) for the first initial two years of power generation operation period. The project is scheduled to achieve commercial operation by May 1, 2027.
The contract win aligns with positive market sentiment regarding Malaysia’s renewable energy landscape. Analysts maintain an "overweight" stance on the sector, citing consistent policy execution, increasing quota allocations, and strong momentum in the solar segment as key drivers of long‑term growth.
“Building on our proven track record in delivering utility-scale projects since LSS4, we are proud to play a key role in this landmark LSS5 cycle,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited. “Our team remains committed to the technical excellence and operational agility required to ensure successful energization by early 2027, further strengthening our position as a preferred EPCC partner in the region.”
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 visit 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 Company’s filings with the U.S. Securities and Exchange Commission, 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:
For media queries, please contact:
Founder Group Limited
info@founderenergy.com.my
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 value and scope of Founder Group's (FGL) LSS5 EPC contract?
When will the 5.5MW solar plant for FGL reach commercial operation?
What output guarantee did Founder Group (FGL) commit to for the project?
How does FGL's contract fit within Malaysia's LSS5 PETRA programme?
What does the 5.5MW contract mean for Founder Group's market position (FGL)?
