Jun 18, 2014 - Hong Kong-based firm Xinyi Solar Holdings Ltd (HKG:00968) has backed out of a share offering plan, targeting as much as HKD 1.39 billion (USD 179m/EUR 132m) according to reports, due to prevailing market conditions.
On Tuesday the solar glass company confirmed that it had discussed a possible placement with placing agents, but said the offering will not proceed. Earlier that day media reports said that Xinyi Solar was selling 400 million shares targeting proceeds of HKD 856 million, according to a term sheet. Its parent Xinyi Glass Holdings (HKG:0868) was also to place 230 million shares in the unit for HKD 508 million.
Xinyi Solar expects to report 100% higher attributable net profit for the first half of 2014 as compared with the HKD 80.2 million recorded a year earlier. In a statement last week it explained that the average selling prices for both raw and processed photovoltaic (PV) glass had increased as a result of rising demand worldwide. In turn, the firm's gross profit margin improved and beefed up its overall profitability in January-June 2014.
Xinyi Solar will publish its financial results for the first half of 2014 around the end of July.