Yingli preps share offering aimed at funding downstream expansion


China’s Yingli Green Energy has said it plans to offer 25 million American Depositary Shares (ADS), each representing one ordinary company share, in an underwritten registered public offering.

The U.S. dollar-denominated ADS allow foreign corporations to list ordinary equity for purchase on U.S. stock exchanges.

Yingli said it intends to use some 50% to 60% of the net proceeds from the offering for downstream expansion and the remaining portion for other general corporate purposes. It added that the company’s management will have significant discretion in the allocation of the net proceeds that it may receive from the offering. Yingli stressed that it may determine at a later time to use the proceeds for different purposes, depending on future events and other changes in the business climate.

Yingli said it would grant underwriters an option to purchase up to 3.75 million additional ADSs to cover over-allotment.

Deutsche Bank Securities and Goldman Sachs Asia are acting as joint bookrunners for the offering. HSBC Securities USA is acting as a co-manager for the offering.

Yingli has been aggressively expanding its downstream activities as it increases operations in the domestic Chinese market. It recently announced the creation of a joint CNY 1 billion ($160 million) Renewable Energy Fund with investment group Shanghai Sailing Capital Management designed for investment in solar energy projects throughout China.