Xinyi Solar to Raise USD194.4 Million in Rights Offering of Shares

Published: Apr 19 2017
Deal Summary

Xinyi Solar Holdings Limited, a solar PV glass manufacturer, has agreed to issue 674,880,000 shares at a price of HKD2.24 (USD0.288) per share for gross proceeds of HKD1,511.73 million (USD194.45 million) in rights offering.

The shares will be issued on the basis of one rights share for every 10 existing shares held on May 15, 2017. The issue price represents: (i) a discount of approximately 10% to the last closing price (HKD2.49 (USD0.32)); (ii) a discount of approximately 10.8% to the average closing price of approximately HKD2.51 (USD0.32) per share as quoted on the stock exchange for the five consecutive trading days ending on and including the last trading day (April 19, 2017); (iii) a discount of approximately 11.5% to the average closing price of approximately HKD2.53 (USD0.32) per share as quoted on the stock exchange for the 10 consecutive trading days ending on and including the last trading day; and (iv) a discount of approximately 9.3% to the theoretical ex-right price of approximately HKD2.47 (USD0.31) based on the last closing price.

Datuk LEE Yin Yee, B.B.S., LEE Sing Din, LI Ching Leung, LI Ching Wai, LI Man Yin, NG Ngan Ho, SZE Nang Sze, TUNG Ching Bo and Datuk TUNG Ching Sai are acting as underwriters to the company for the offering.

The company intends to use the proceeds from the offering for (i) Approximately 65% of the net proceeds will be used to develop and construct new utility-scale ground mounted solar farms for the Group; (ii) Approximately 15% of the net proceeds will be used to expand, renew and upgrade the Group’s solar glass production facilities; and (iii) The remaining 20% of the net proceeds will be used as general working capital.

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