Xinyi revises plans for shares placement

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Hong Kong listed Xinyi Solar has announced apparent changes to a share placing intended to finance two new PV glass production lines.

In March, parent company Xinyi Glass Holdings Ltd unveiled plans to issue 380 million shares in its Xinyi Solar Holdings Ltd solar glass subsidiary at a listing price of HK$3.47 per share.

The placement, intended to raise HK$1.31 billion (US$167 million) for two new factories in the Chinese port city of Beihai, listed Citigroup Global Markets Ltd as responsible for finding purchasers for 90% of the stock, with HSBC to source buyers for the balance and Citigroup acting as underwriter.

However, Xinyi Glass and its subsidiary this morning announced Citi – as “sole global coordinator, the sole bookrunner and the underwriter” – would answer for a placement of only 314 million shares, albeit at a higher price of HK$3.75 per share.

Reduced proceeds

No mention was made of HSBC as Wuhu-based Xinyi Solar and its subsidiary announced to the Hong Kong exchange it anticipates the placement will complete on Thursday.

Xinyi had stated in March the placement would generate HK$1.32 billion for net proceeds of HK$1.31 billion to fund two 1,000 ton/day production capacity fabs in Beihai, in Guangxi autonomous province. The factories are due to open in the first and second quarters of next year.

With the original plans amounting to 4.96% of company stock, the revised figures released this morning would account for a dilution of only 3.9% of Xinyi Solar shares and would be expected to generate HK$1.18 billion gross income.

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