Daqo New Energy closes IPO registration for major polysilicon unit
Source: Shanghai Stock Exchange
Daqo New Energy Corp (NYSE:DQ) on Tuesday said it has completed the IPO registration process for its major subsidiary Xinjiang Daqo New Energy, expecting the share issuance to be wrapped up within four weeks.
The Chinese polysilicon maker, which currently holds a 95.6% equity interest in Xinjiang Daqo, aims to list the entity on the Shanghai Stock Exchange's Sci-Tech innovation board. As part of the initial public offering (IPO), at least 286,764,706 shares will be placed, leaving the parent company with a stake of around 81.26%, as announced earlier this year.
The issuance process is due to begin soon, Daqo New Energy said without giving financial details about the planned transaction.
Xinjiang Daqo is the main operational subsidiary of Daqo New Energy and brings the majority of the polysilicon maker’s net profit and revenue.
“We expect that its IPO will definitely strengthen Xinjiang Daqo's leadership in the polysilicon industry by accelerating growth, continuing to invest in R&D and quality improvements, and expanding into high-end markets such as semiconductor-grade polysilicon,” commented Daqo New Energy's CEO Longgen Zhang.
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