Canadian Solar Wants Capital Market Access In China

Canadian Solar Plans To Get Modules & System Solutions Business Listed In China To Raise investment Capital; NASDAQ Listing To Continue
06:24 AM (Beijing Time) - 28. July 2020
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After Trina Solar and Daqo New Energy, Canadian Solar has decided to pursue Chinese capital markets as well. The Canada headquartered company wants to get its module manufacturing business listed on either STAR Market of ChiNext Market. (Photo Credit: TaiyangNews)

Key Takeaways

  • Canadian Solar will be exploring Chinese listing for its MSS business division
  • It will either attempt for a listing on the STAR Market or ChiNext Market
  • The listing would involve its principal China subsidiary and overseas subsidiaries
  • It will give it access to investment capital and strengthen manufacturing business

The management of Canadian Solar Inc. has decided to raise money for the company’s future prospects by attempting to get listed in China through an initial public offering (IPO). In a strategic review, the Board of Directors of the company agreed to have its modules and system solutions (MSS) business listed on either the Shanghai Stock Exchange’s Science and Technology Innovation Board (STAR Market) or on the Shenzhen Stock Exchange’s ChiNext Market.

Both these platforms support innovative and fast-growing companies, Canadian Solar said. It will list the shares of its principal China subsidiary and overseas sales subsidiaries, while continuing to be listed on the NASDAQ.

The MSS business for Canadian Solar comprises the design, development, manufacture and sale of solar modules while also providing EPC and O&M services for solar projects. The other business vertical it operates in is the energy business comprising development, sale and operation of solar projects and sale of electricity.

The listing process is estimated to take 18 months to 24 months, and for Canadian Solar to qualify its subsidiary will need to be converted into a Sino-foreign joint stock company prior to the listing. This is to be completed through equity raised from China-domiciled investors.

“This potential listing of our MSS in China will provide us a new platform to raise investment capital and strengthen our leading position in solar manufacturing,” explained said Dr. Shawn Qu, chairman and CEO. “Meanwhile, by remaining listed on the NASDAQ as a Canadian company and partnering with long-term investors, we will continue to grow our solar project development platform in every major market around the world and reap the synergies from the two complementary businesses.”

Qu added that Canadian Solar shareholders as owners of the China IPO issuer will continue to own the solar manufacturing business.

The Chinese STAR Market listing seems to be a much sought after option for Chinese solar companies as in the recent past Daqo New Energy announced its intention to get its subsidiary listed on the exchange to extend access to the Asian nation’s capital markets (see Daqo Eyeing Chinese Capital Markets For Listing). Daqo’s announcement was followed by Trina Solar issuing it’s A-Shares on the STAR Market raising over RMB 2.3 billion (see Trina Solar Debuts On China’s STAR Market).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani