CSI Solar announces initial public offering pricing on Shanghai Stock Exchange

CSI Solar, which consists of Canadian Solar’s module, battery storage manufacturing, inverters, solar system kits and EPC (engineering, procurement and construction) businesses, announced the pricing of its Shanghai Stock Exchange (SSE) initial public offering (IPO) of shares as a new public company traded on the SSE’s Sci-Tech Innovation Board.

Canadian Solar’s global modules, battery and inverter solutions business is issuing 541 million shares, or 15% of 3.6 billion outstanding shares, at 11.10 renminbi ($1.17) per share, raising the equivalent of $848 million in proceeds.

Guelph, Ontario-based Canadian Solar currently owns 80% of CSI Solar’s outstanding shares. Following completion of CSI Solar’s IPO, the parent company will own about 64% of CSI Solar shares. If an over-allotment is exercised, Canadian Solar would own 62% of the new public company.

The companies set a May 31, 2023 issuance and subscription date of CSI Solar’s IPO,  while a final share placement and share allocation will be confirmed by June 5, 2023.

On April 11, Canadian Solar announced CSI Solar’s capacity expansion plans. CSI Solar intends to have 20.4 GW of ingot, 35 GW of wafer, 50 GW of cell and 50 GW of module capacities by the end of 2023 and is expected to have 50.4 GW of ingot, 50 GW of wafer, 60 GW of cell and 75 GW of module capacities by the end of Q1 2024.

In Q1 2023 earnings, Canadian Solar reported a record 6.1 GW of solar module shipments in Q1 2023, a 68% yearly increase over 3.63 GW of module shipments in Q1 2022. The company manufactures solar modules in Canada, China, Indonesia, Vietnam and Brazil.

“We remain focused on profitable growth and continue to optimize our cost structure through vertical integration. With the imminent IPO of our CSI Solar subsidiary, we will have a new platform to raise investment capital and further strengthen our leading position in solar and battery storage manufacturing,” said Dr. Shawn Qu, president and chief executive officer of Canadian Solar.

The integrated solar company’s shares are listed in the U.S. (Nasdaq), London, Frankfurt and Mexico. Canadian Solar listed as a public company in November 2006 on Nasdaq via Lehman Brothers, Deutsche Bank, Piper Jaffray and CIBC Capital Markets, raising $115.5 million at $15 per share. Today the company traded at $43.56 per share for a $2.82 billion market capitalization.