Xinjiang Daqo New Energy, the principal operating subsidiary of Chinese polysilicon major Daqo New Energy, has successfully listed itself on the Shanghai Stock Exchange’s (SSE) Sci-Tech Innovation Board, dubbed STAR Market. With this, its Initial Public Offering (IPO) process has completed.
On day 1 of trading under SSE code 688303, Xinjiang Daqo’s shares closed at RMB 61.11 per share, increasing from 184.4% from the IPO price, according to Daqo New Energy.
The subsidiary has raised RMB 6.45 billion ($1 billion) by listing 300 million shares, pricing each at RMB 21.49 per share, as it expected while announcing share price of the IPO. It had back then said the company will issue 90 million shares to cornerstone investors including Abu Dhabi Investment Authority (ADIA) (see Daqo New Energy Expects To Raise RMB 6.45 Billion With IPO).
With the IPO complete, Daqo New Energy now holds 80.7% stake in the subsidiary. The Chairman of both Daqo New Energy and Xinjiang Daqo, Guangfu Xu said, “With access to the fast-growing capital market in China, we are committed to focus on our core business, continue our efforts on cost reduction and quality improvement, further invest in R&D and innovation and expand our business to new areas such as semiconductor-grade polysilicon.”
Currently, Daqo New Energy has a total annual high-purity polysilicon production capacity of 70,000 MT, with another 35,000 MT, that it expects to completely bring online by the end of Q1/2022. It will add to the company’s current production base in Xinjiang’s Uyghur Autonomous Region, a place that’s under international scrutiny at present due to reported forced labor accusations against China and companies operating here. The US has implemented a ban on certain solar products from Xinjiang and Daqo New Energy is one of the blacklisted companies by the US government owing to this issue (see US Government Ban On Xinjiang Produced Solar Products).