Polysilicon manufacturer Daqo New Energy has completed its initial public offering (IPO) of its main operational subsidiary Xinjiang Daqo New Energy on the Shanghai Stock Exchange’s Sci-Tech innovation board (STAR Market) and has started trading (SSE:688303).
Xinjiang Daqo issued 300,000,000 shares representing 15.58% of the total outstanding shares after the IPO. They were issued at RMB21.49 (US$3.32) per share, with the entire proceeds of the IPO reaching RMB6.45 billion (US$1 billion). The application was made on 13 July.
Daqo now owns 80.7% of Xinjiang Daqo. On its first day of trading yesterday, Xinjiang Daqo’s shares closed at RMB61.11 (US$9.43) per share, up 184.4% compared with the IPO price.
“The successful IPO of Xinjiang Daqo marks a very important milestone for the Company,” said Guangfu Xu, chairman of Daqo New Energy and Xinjiang Daqo. “In many regions of the world, including China, solar PV has already reached grid parity, making it competitive with traditional fossil-fuel energies, even without government subsidies.”
Xu said that in the short term, as the costs of solar PV and storage “continue to fall”, Daqo expects to achieve “broader grid parity for solar PV and energy storage” as well as expanding its operations into semiconductor-grade polysilicon.