Hong Kong-based power producer Sky Solar has reduced its initial public offering (IPO) of shares by about US$90 million, falling from October’s estimation of a US$138 millionvaluation to US$48 million, as reported by IPO advisor Renaissance Capital.
This harsh cut follows Sky Solar’s announcement last week that postponed the trading of its shares in the NASDAQ American stock exchange, originally scheduled to begin last Friday.
This is the second time Sky Solar’s total expected revenue from its shares has been re-evaluated, based on forms filed with the Securities and Exchange Commission (SEC) earlier that reported the company “could have raised a maximum aggregate offering price of $172,500,000”.
Sky Solar has also decreased the number of American Depositary Shares it plans to sell from 12.5 million to 6 million, now offering them at a range of US$7-$8 per share as opposed to $10-$12 per share.
The company also named Roth Capital Partners – formally a co-manager on the deal – as Sky Solar’s new underwriter, in place of FBR Capital Markets and Cowen & Company.
None of Sky Solar’s international branches could be reached for comment at the time of publication.