Canadian Solar intends to float module business in China

Canadian Solar Inc (NASDAQ:CSIQ) will pursue a listing in China of the company’s modules and system solutions (MSS) business, it announced on Monday.

The board of directors of Canadian Solar took the decision after a special committee of independent directors concluded a review of the available strategic alternatives. The solar power company, however, has not yet determined whether to list the business on the Shanghai Stock Exchange's Science and Technology Innovation Board, also known as the STAR market, or the Shenzhen Stock Exchange's ChiNext Market. In any case, the move would involve the shares of Canadian Solar's principal China subsidiary and overseas sales subsidiaries.

The company expects the listing process to take between 18 and 24 months. It will need to complete a round of equity raising from China-domiciled investors in order to convert the particular subsidiary into a Sino-foreign joint stock company.

The transaction depends on factors such as the capital market conditions in China and globally.

"This potential listing of our MSS in China will provide us a new platform to raise investment capital and strengthen our leading position in solar manufacturing," said Shawn Qu, Chairman and CEO.

Canadian Solar, which also has a global energy business that develops and owns solar and storage plants, intends to keep its NASDAQ listing.

Choose your newsletter by Renewables Now. Join for free!