Canadian Solar unit targets USD 845m in Shanghai IPO
Source: Shanghai Stock Exchange
CSI Solar Co Ltd, a majority-owned unit of Canadian Solar Inc (NASDAQ:CSIQ), will seek to raise CNY 6 billion (USD 845.4m/EUR 790.4m) gross in its initial public offering (IPO) in Shanghai, the parent company said on Tuesday.
The subsidiary's stock is planned to be listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange. Under the deal, cleared by Chinese regulators at end-2021, about 541.1 million shares will be issued at a price of CNY 11.10 apiece.
The transaction’s underwriters will be granted a 30-day option to buy an additional 81.2 million. Provided that this option is exercised in full, CSI Solar will have sold 622.2 million shares, equal to roughly 17% of its outstanding stock following the placement.
CSI Solar, one of Canadian Solar’s two main businesses, is involved in solar module manufacturing and operates as a total system solutions provider. Currently, Canadian Solar owns roughly 80% of CSI Solar’s outstanding stock, with the stake to be lowered to 64% if the over-allotment option is not exercised and to 62% if it is fully exercised.
Subscriptions will be accepted from May 31, with the final IPO share placement and share allocation due to be confirmed on June 5.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.