PVTIME – Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy”, the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that the application documents regarding a potential initial public offering and listing of the shares of Xinjiang Daqo New Energy Co., Ltd. (“Xinjiang Daqo”), a principal operating subsidiary of Daqo New Energy, had been submitted to and received by the Shanghai Stock Exchange.
In June 2020, Daqo New Energy announced its intention to list the shares of Xinjiang Daqo on the Shanghai Stock Exchange’s Sci-Tech innovation board (the “STAR Market”), a stock exchange intended to support innovative companies in China.
According to Xinjiang Daqo’s relevant initial public offering documents, it plans to issue at least 286,764,706 shares, accounting for approximately 15.00% of its total share capital after the offering. Currently, the Company owns approximately 95.60% of Xinjiang Daqo’s shares. Following this initial public offering, the Company would hold approximately 81.26% of Xinjiang Daqo’s shares.
The proceeds of the offering, which are subject to the actual size and pricing of the offering, will be used for capital expenditures for the following two polysilicon manufacturing projects and additional working capital for Xinjiang Daqo.
1) Phase 4B ultra-high-purity polysilicon project for mono-crystalline solar PV wafer applications with an annual production capacity of 35,000 MT, which will significantly increase our capacity to better address the fast-growing demand for mono-grade polysilicon and further solidify our leadership in the industry. The total capital expenditure for this project is expected to be approximately US$514 million.
2) A semi-grade ultra-high-purity polysilicon project for semiconductor wafer applications with an annual capacity of 1,000 MT, which will best leverage our expertise in advanced technology and quality control, diversify our product portfolio and fill the gap of domestic supply of semi-grade polysilicon. The total capital expenditure for this project is expected to be approximately US$62 million.
3) Additional working capital of approximately US$156 million to optimize debt structure, enhance R&D and fund business development projects.
The completion of the proposed initial public offering of Xinjiang Daqo is subject to the review process by the Shanghai Stock Exchange and the registration process by the China Securities Regulatory Commission. The Company cannot predict its ability to successfully complete the listing of Xinjiang Daqo’s shares, the related timeline or the actual size and pricing of the offering.