Canadian Solar Inc. (NASDAQ: CSIQ) stock soared by 12.54% at last close while the CSIQ stock price rises by 5.63% in the pre-market trading session. Canadian Solar is among the world’s biggest solar technology and renewable energy enterprises, having been formed in 2001 in Canada. It is a major producer of solar photovoltaic modules, a supplier of solar energy and battery storage systems, and a manufacturer of utility-scale solar power and battery storage initiatives, with a network of projects in different phases of development throughout the globe.
What is happening?
The application paperwork for Canadian Solar’s possible initial public offering and listing on the Shanghai Stock Exchange’s Science and Technology Innovation Board have been submitted by its majority-owned subsidiary CSI Solar Ltd. The Shanghai Stock Exchange has received the paperwork.
In July 2020, Canadian Solar announced its intention to list the shares of its CSI Solar subsidiary, which formerly included the Module and System Solutions and China Energy businesses, on the Shanghai Stock Exchange. The STAR Market was chosen for the listing because it is designed to promote China’s technology and creative firms.
CSI Solar intends to issue up to 541,058,824 shares, excluding shares issuable upon the exercise of an over-allotment option, which will amount for no less than 15% of its entire share capital following the IPO, according to the relevant initial public offering documents. Canadian Solar now holds roughly 80% of CSI Solar’s shares, including approximately 5% of shares issued under CSI Solar’s employee equity ownership plan, which will take effect immediately upon the IPO’s completion. Canadian Solar plans to hold its ESOP shares immediately following the IPO, after taking into account the ownership transfer of the ESOP shares and the dilution effect from the freshly issued IPO shares.
The revenues of the offering would be used to enhance CSI Solar and its market leadership role by making an investment in expansion projects throughout the solar value chain, research & innovation, and additional working capital for CSI Solar, which depends on the actual size and pricing of the offering.