Canadian Solar Seeks Entry Into China's Capital Markets

CSIQ shares jumped 5% on the news that it will pursue a secondary listing.
Binwei WangAug 03,2020,08:41

Canadian Solar Inc. (Nasdaq: CSIQ), announced Monday that a special committee of independent directors of the company has completed a review of strategic alternatives available to the company, sending the stocks of CSIQ trading up 5%, at $ 23.84 interday.

The Canada-based manufacturer of solar photovoltaic modules said the board decided to pursue a listing of the Company's Modules and System Solutions business on either the Shanghai Stock Exchange's Science and STAR market or the Shenzhen Stock Exchange's ChiNext Market, both of which are intended to support innovative and fast-growing companies.

It approximately takes 18 to 24 months to finish the listing process, the company reported. According to Chinese securities regulations, the Subsidiary is required to be converted into a Sino-foreign joint stock company prior to listing which shall be completed through a round of equity raising from China-domiciled investors.

Shawn Qu, the chairman and chief executive officer of CSIQ, stated, "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.”

He added, “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."

For the future, the company said it will continue to seek capital partnerships with long-term investors looking for opportunities to deploy capital in clean, profitable and countercyclical solar energy infrastructure investments, either through public or private investment vehicles.