Polysilicon provider Daqo New Energy has applied for an initial public offering (IPO) of its major operational subsidiary Xinjiang Daqo New Energy on the Shanghai Stock Exchange’s Sci-Tech innovation board (STAR Market).
Xinjiang Daqo plans to release 300,000,000 shares, representing 15.58% of the total shares outstanding after the IPO, at RMB21.49 per share. The IPO is estimated to raise roughly RMB6.45 billion in gross proceeds. After the IPO, Daqo will still own 80.7% of Xinjiang Daqo.
In June, Daqo saw its IPO plans progress after completing its registration with the China Securities Regulatory Commission (CSRC). The raise is being used for planned expansions.
In the IPO, 90,000,000 shares will be issued to “cornerstone investors” in China, with some also going to Abu Dhabi Investment Authority.
The final share placements and allocations are expected to be confirmed on 16 July. Xinjiang Daqo will be officially listed on the STAR Market on 22 July.
Daqo’s current annual polysilicon production stands at 70,000 metric tons, however capacity for a further 35,000 metric tons is due to come onstream in Q1 2022.