Norway-based PV manufacturer, Renewable Energy Corporation (REC), has launched an initial public offering (IPO) on the Oslo Stock Exchange.
The Financial Supervisory Authority of Norway approved the public offering of shares, and listing of REC Solar ASA on the 3 October.
REC will be re-branded and re-named REC Silicon, after the company announced in July that it would split its PV module and polysilicon production into two separate companies: REC Solar, and REC Silicon, as an incentive to investors. In August, REC published results of its oversubscribed convertible bond offer allowing the partial repurachase of exsisting bonds.
All solar aspects of the company have been sold to the division, REC Solar.
Bids opened to existing shareholders 23 September, and for public offers from 4 October, ending on 18 October.
Forty million shares are being offered, at the subscription price of US$3.33 per share – a total of US$133 million.
Out of the total, US$52 million will be made allocated to REC Solar in net cash, as well as access to undrawn credit of US$33million, and US$83 million for REC Silicon. REC Silicon will also receive US$284 million in gross sale proceeds.
Once all transactions are completed, REC Solar is expected to be listed on the stock exchange, around the 25 October. The board of directors and management team for REC Solar have also been announced.
The split was approved by shareholders in a meeting on 23 September, and bondholder approval was awarded in August.
REC will not own any of the shares after the IPO is completed, and REC Solar will be debt free. All REC operations in silicon are to continue in Moses Lake and Butte, US.