Canadian Solar Subsidiary Announces IPO Pricing on Shanghai Bourse
The total proceeds from the IPO are expected to be nearly $844 million
Canadian Solar, a solar module manufacturer headquartered in Canada, has revealed the pricing for the shares of CSI Solar, its majority-owned subsidiary, as part of its proposed initial public offering (IPO) on the Shanghai Stock Exchange.
The proposed price for the IPO stands at RMB 11.10 (~$1.56) per share, with estimated total gross proceeds of approximately RMB 6 billion (~$844.13 million). Currently, Canadian Solar holds around 80% of the outstanding shares of CSI Solar.
CSI Solar intends to offer 541,058,824 shares, constituting 15% of the total outstanding shares of 3,607,058,824 after the IPO. It plans to provide the primary underwriter of the IPO with a 30-day option to purchase an additional 81,158,500 shares to accommodate potential over-allotments.
Assuming the over-allotment option is fully exercised, CSI Solar will issue 622,217,324 shares, approximately 17% of the 3,688,217,324 shares outstanding immediately following the IPO.
Last month, the China Securities Regulatory Commission approved the registration of CSI Solar to issue an IPO.
The company plans to use the proceeds from the IPO to accelerate vertical integration and capacity expansion, particularly in the U.S. market.
Following the completion of the IPO, assuming the over-allotment option is not exercised, Canadian Solar’s ownership in CSI Solar will be approximately 64%. However, if the over-allotment option is fully exercised, Canadian Solar’s ownership in CSI Solar will be around 62%.
The IPO issuance and subscription date was May 31, 2023, while the final confirmation of IPO share placement and allocations is expected to occur on June 5, 2023.
In 2020, the company decided to list its business on Chinese bourses. The company had said it would pursue a listing of its module and system solutions business either on the Shanghai Stock Exchange’s Science and Technology Innovation Board or the Shenzhen Stock Exchange’s ChiNext market.
Earlier in January this year, CSI Solar had entered a multi-year investment agreement with the municipal government of Yangzhou City in Jiangsu Province of China for capacity additions across the company’s solar and battery storage supply chain. Through the agreement, CSI Solar aims to add vertically integrated high-efficiency wafer, cell, and module capacity, along with battery system manufacturing capacity in Yangzhou’s clean energy manufacturing industrial park.