Xinyi Energy completes Hong Kong IPO to raise $465 million

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Chinese solar company Xinyi Energy Holdings Limited has reportedly raised $465 million from its initial public offering. The business – a subsidiary of solar glass manufacturer Xinyi Solar Holdings Limited – operates a 954 MW portfolio of PV plants in China.

Bloomberg, citing confidential sources, reported the company sold 1.88 billion shares at HK$1.94 ($0.25) per share. Xinyi Solar had set a price range of HK$1.89-2.35 per share, for the spin-off Xinyi Energy. The company said it will confirm the official price on Monday.

According to the documentation accompanying the listing, the newly public company intends to spend the proceeds adding a further 540 MW of generation capacity to its portfolio. The parent company, Xinyi Solar, in December rowed back on plans for a global IPO in favor of listing solely on the Hong Kong exchange due to global stock market volatility. Xinyi Energy iterated that its own listing and operations would, however, remain unaffected by the parent company's decision. The IPO of Xinyi Energy is, in fact, a global offering.

Parent company Xinyi Solar Holdings – itself a subsidiary of Xinyi Glass – has consistently raised annual revenues, from HK$968 million in 2016 to HK$1.2 billion last year. Its total annual income attributable to equity holders figure rose from HK$241 million in 2016 to HK$1.3 billion in 2017, but slumped back to HK$299 million last year.

In March, Xinyi Glass raised capital to expand its glass production facilities and further the Xinyi Energy project development business. The glass manufacturer raised US$167 million by issuing 380 million Xinyi Solar shares in response to higher demand for its products.

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