CSIQ’s Chinese IPO Moves Forward

• The planned IPO of Canadian Solar's CSI Solar is now moving forward with SSE announcing its pricing
• The pricing has been fixed at RMB 11.10/share to raise an approximate of RMB 6 billion
• It will bring down parent Canadian Solar's stake in the company to 64% or in case of over-allotment down to 62%

Canadian Solar has priced per share of its majority owned subsidiary CSI Solar Co Ltd at RMB 11.10 ($1.56) for its initial public offering (IPO) on the Sci-Tech Innovation Board of the Shanghai Stock Exchange (SSE), to raise approximately RMB 6 billion ($844 million).

The Canada headquartered vertically integrated solar PV manufacturer currently owns around 80% stake in CSI Solar. According to the SSE, it is issuing 541 million or 15% of the 3.6 million outstanding shares which will bring down its stake in the subsidiary to approximately 64% post IPO.

In case it plans to issue additional shares in case of over-allotments, Canadian Solar's share will come down to 62%.

Management says May 31, 2023 is the date for IPO issuance and subscription while final IPO share placement and share allocations are likely to be confirmed on June 5, 2023. Canadian Solar itself is trading on the NASDAQ as CSIQ.

CSI Solar is the manufacturing arm of Canadian Solar with an annual production capacity of 20.4 GW ingot, 20 GW wafer, 19.8 GW cell and 32.2 GW module, which it plans to increase to 50.4 GW, 50 GW, 60 GW and 75 GW, respectively by March 2024 (see Gigantic Expansion Plans From Canadian Solar).