Chinese polysilicon producer GCL Technology said it plans to raise HKD 5.45 billion ($700 million) through a share placement, selling 4.74 billion new shares at HKD 1.15 each.
Net proceeds of about HKD 3.51 billion will mainly support Beijing’s plan to consolidate the polysilicon industry, the company said. The government-backed initiative aims to restructure production capacity and reduce oversupply.
The plan calls for China’s six largest polysilicon manufacturers – Tongwei, GCL, Daqo, Xinte, East Hope and Asia Silicon – to raise about CNY 50 billion to acquire and idle roughly one-third of the nation’s output, equivalent to 1 million metric tons of lower-quality capacity. Industry analysts say such a move could stabilize pricing across the photovoltaic supply chain.
The six producers have a combined capacity of nearly 2.5 million metric tons, compared with about 700,000 metric tons operated by other firms.
GCL added that part of the funds will also be directed toward growing silane demand as the solar industry shifts from TOPCon cells to back-contact cells, as well as for working capital and debt repayment.
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