Solargiga completes rights issue

Dec 13, 2012 - Solargiga Energy Holdings Ltd (HKG:0757) today said it had completed its rights issue announced on November 2 in a bid to raise HKD 89.2 million (USD 11.5m/EUR 8.8m) net to repay bank loans.

The Chinese photovoltaics (PV) company said qualifying shareholders had subscribed for approximately 118.6 million shares, or 47.59% of the total number offered. The underwriter, Samoa-based investment holding company Hiramatsu International Corp, has subscribed for the around 130.6 million shares not taken up by shareholders.

Solargiga offered slightly more than 249 million shares, one new share for every nine existing shares held by qualifying shareholders, at a subscription price of HKD 0.375 per share, a 15.16% discount to the average closing price of the firm's shares in the five trading days up to November 2.

As a result of the rights issue, the stake in the company of the underwriter has increased to 5.56% from 0.32%. The interest held by other public shareholders, excluding the underwriter, fell to 53.46% from 57.25%. Solargiga's executive director and chairman Tan Wenhua and executive director Hsu You Yuan have maintained their stakes of 21.22% and 0.45%, respectively. You Hua, which is wholly owned by Tan, has also kept its holding at 6.23%.

(HKD 1.0 = USD 0.129/EUR 0.099)

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