SCHEDULE: Founder Group CEO Boosts Stake, Secures Solar Contracts

Founder Group Ltd's CEO, Lee Seng Chi, increased his beneficial ownership to 18.80% after receiving a significant grant of Class B shares as incentive for securing large-scale solar plant contracts in Malaysia.

Summary

• Lee Seng Chi, CEO, Director, and Chairman of Founder Group Ltd, filed a Schedule 13D reporting his beneficial ownership.
• He beneficially owns 7,802,794 shares, representing 18.80% of the Class A shares on an as-converted basis.
• His holdings consist of 2,607,954 Class A shares and 5,194,840 Class B shares.
• Class B shares are convertible to Class A shares on a one-for-one basis and carry twenty votes per share compared to one vote per Class A share.
• The total number of shares on an as-converted basis for percentage calculation is 41,502,842.
• On January 8, 2026, Lee Seng Chi received a grant of 3,194,840 Class B shares as incentive for successfully procuring contracts for multiple large-scale solar photovoltaic plants in Malaysia.
• He previously held 4,832,954 ordinary shares post-IPO, which were re-designated in July 2025 into 2,832,954 Class A shares and 2,000,000 Class B shares.
• Between December 2025 and January 2026, he sold 225,000 Class A shares in the open market.

Sentiment

Score: 8

Explanation: The filing indicates strong positive developments with the CEO receiving a significant incentive grant tied to successful contract procurement in the growing solar sector, increasing his beneficial ownership and voting power, which generally signals confidence and positive future prospects for the company.

Positives

• CEO Lee Seng Chi received a substantial incentive grant of 3,194,840 Class B shares, indicating successful performance in securing significant contracts.
• The incentive grant is tied to the successful procurement of contracts for multiple large-scale solar photovoltaic plants in Malaysia, suggesting positive business development for Founder Group Ltd.
• The CEO's increased beneficial ownership (18.80%) demonstrates strong alignment of interests with shareholders and confidence in the company's future.
• Class B shares carry 20 votes per share, giving the CEO significant voting power and stability in leadership.

Negatives

• The CEO sold 225,000 Class A shares in the open market between December 2025 and January 2026, which could be perceived negatively, although offset by the larger grant.

Future Outlook

The Reporting Person currently has no present plans or proposals that relate to or would result in any transaction, event or action enumerated in paragraphs (a) through (j) of Item 4 of Schedule 13D. However, the Reporting Person may, at any time, review, reconsider, and change his position, purpose, or develop such plans, and may seek to influence management or the board of directors of the Issuer with respect to the business and affairs of the Issuer.

Management Comments

• "The Reporting Person may, at any time, and from time to time, review, reconsider and change his position and/or change his purpose and/or develop such plans and may seek to influence management or the board of directors of the Issuer with respect to the business and affairs of the Issuer and may from time to time consider pursuing or proposing such matters with advisors, the Issuer, or other persons."

Industry Context

The incentive grant to the CEO for securing large-scale solar photovoltaic plant contracts in Malaysia aligns with the global trend towards renewable energy expansion and infrastructure development. This suggests Founder Group Ltd is actively participating in the growing solar energy sector, particularly in Southeast Asia.

Related Party Transactions

• Lee Seng Chi, CEO, Director, and Chairman, received a grant of 3,194,840 Class B shares from the Issuer as incentive payments for successful procurement of contracts.

Stakeholder Impact

• Shareholders: Increased insider ownership and confidence, potential for improved company performance due to successful contract procurement.
• Management/Board: CEO's increased voting power could solidify his influence on strategic decisions.
• Employees: Potential for increased job security and growth opportunities if the new contracts lead to expansion.

Next Steps

• The Reporting Person may, at any time, review, reconsider, and change his position and/or purpose regarding his investment in the Issuer.
• The Reporting Person may seek to influence management or the board of directors of the Issuer.
• The Reporting Person may consider pursuing or proposing matters with advisors, the Issuer, or other persons.

Key Dates

Recommendation

The significant incentive grant to the CEO, directly linked to the successful procurement of multiple large-scale solar photovoltaic plant contracts, signals robust business development and strong future revenue potential for Founder Group Ltd. The CEO's increased beneficial ownership, particularly with high-voting Class B shares, demonstrates strong insider confidence and alignment with long-term shareholder value. This combination of successful strategic execution and strong insider commitment makes the stock a compelling 'strong buy' for investors.

Keywords

Founder Group Ltd, FGL, Lee Seng Chi, Schedule 13D, Beneficial Ownership, Class A Shares, Class B Shares, Solar Photovoltaic, Malaysia, Incentive Grant, Corporate Governance, CEO Stake