Xinte Energy plots share problem to pay for brand-new polysilicon facility

Jun 15, 2021 09:01 PM ET
  • Xinte Energy has actually introduced plans to offer virtually 180 million shares in the business to elevate funds for a brand-new 100,000 heap polysilicon manufacturing facility.
Xinte Energy plots share problem to pay for brand-new polysilicon facility
Image: Xinte Energy

In a statement to the marketplace provided late recently, polysilicon manufacturer Xinte said it meant to sell an optimum of 177.3 million common shares in business, the profits of which would be made use of to "take the rapid advancement chances" within the solar PV sector and also boost the business's competitive placement in polysilicon supply.

Xinte kept in mind two letters of intent, authorized by existing investor TBEA as well as Jinglong Modern technology, which commit the business to obtaining shares within the issue. TBEA has actually devoted to acquiring 94.36% of the offering, with Jinglong consenting to take up the continuing to be 5.64%.

The rates of the shares, as well as consequently the general gross profits from the offering, has yet to be validated, nevertheless Xinte has actually said earnings will certainly be utilized mostly to pay for capex costs related to a prepared 100,000 heap polysilicon production center being advanced by subsidiary Inner Mongolia Xinte.

That facility is expected to cost a total amount of RMB3.5 billion (US$ 546 million). Construction was slated to start this quarter and take about 18 months to complete. Xinte stated earnings from the concern would lower stress on existing funding gets and additionally possibly allow building of the center to be quickened, responding to existing supply chain restraints.

The center will certainly produce electronics-grade polysilicon suitable for usage in n-type silicon wafers, the company said.

Profits from the offering drew away to Inner Mongolia Xinte via ways of a resources injection will certainly not surpass RMB2 billion, Xinte stated, however if net proceeds drop below RMB2 billion, the totality of earnings from the share problem will certainly be utilized.

The strategies still call for shareholder authorization, with a vote scheduled for later on this month.

With polysilicon prices rising, manufacturers are accelerating strategies to enhance supply in order to react to require. Rival polysilicon producer Daqo New Energy is additionally intending to finish brand-new production centers in the following 18 months, as well as previously this month made progress with its strategies to detail on Shanghai's CELEBRITY Market to increase funds.

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