Module manufacturer Hanwha SolarOne has raised US$21 million from a share issue. The company had hoped to raise as much as US$70 million however.
The company’s offering at-the-market offering of American Depositary Shares (ADSs), each representing five ordinary shares, concluded towards the end of January.
It sold 6,716,966 ADSs at an average price of US$3.20 raising US$21 million after deductions and expenses.
“The company maintained a conservative trading posture throughout the ATM offering, in light of the lower stock price, potential shareholder dilution and availability of other financing options,” said Jay Seo, chief financial officer, Hanwha SolarOne.
The prospectus for the offering, submitted to the Securities and Exchange Commission (SEC), said the proceeds would be used for technical upgrades to the company’s manufacturing facilities as well as the expansion of its downstream business, especially in China.