May 31 (Renewables Now) - 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.
(CNY 1.0 = USD 0.141/EUR 0.132)
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