Shunfeng to raise $774 million through share offering

China’s Shunfeng Photovoltaic International has announced plans to issue HKD 6 billion (US$774 million) worth of new shares as the company seeks additional funds for the construction of new solar power stations.

In an announcement made to the Hong Kong Stock Exchange, the company has revealed that it intends to sell more than 600 million new shares in a move that would represent the flotation of 28.2% of its existing share capital. The shares are set to launch at HKD 10 a piece – an issue price that is estimated to be 8.9% below the stock’s previous closing price.

The announcement is part of Shunfeng’s wider strategy to move production closer to the end markets. In an interview in next month’s pv magazine, CEO Wuxi Suntech, a subsidiary of Shunfeng Photovoltaic International, Eric Luo, reveals the company’s ambition to widen its production capabilities closer to 3.5 GW by the end of 2014.

Luo remarked that large parts of Shunfeng’s strategy for expansion is likely to focus on the utilization of idled manufacturing capacities that exist outside of China.

For more information, do not miss the June issue of pv magazine, which is out soon.