Canadian Solar Inc. has announced that its majority-owned unit, CSI Solar Co Ltd, will seek to raise CNY 6 billion (USD 845.4m/EUR 790.4m) gross in its initial public offering (IPO) in Shanghai. CSI Solar is a solar module manufacturer and also operates as a total system solutions provider.
As per the firm, CSI Solar’s stock is planned to be listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange. Chinese regulators had cleared the deal at the end of 2021 and accordingly, about 541.1 million shares will be issued at a price of CNY 11.10 apiece.
A 30-day option will be granted to buy an additional 81.2 million to the transaction’s underwriters. If this option is fully exercised, CSI Solar would witness sale of 622.2 million shares, equal to roughly 17% of its outstanding stock following the placement.
As per reports, 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. The date of acceptance for the subscriptions is from May 31 and with the final IPO share placement and share allocation due to be confirmed on June 5.