Shunfeng plans huge share issuance
Shunfeng intends to issue HK$6bn ($770m) worth of new shares, and has proposed its second name change in two months, as it rolls forward with its plan to become one of the world’s leading renewables developers.
Shunfeng, now a leading PV module maker since its recent acquisition of Wuxi Suntech, will need vast amounts of capital to come anywhere near its goal of installing 10GW of PV capacity over the next two and a half years, most of it in China.
Already understood to be seeking as much as 100bn yuan ($16bn) in credit from China Development Bank, Shunfeng will also sell 600 million new shares – equivalent to nearly 30% of its outstanding share count – for at least HK$10 apiece.
The money it raises will primarily be spent on project development and EPC work.
Shunfeng’s Hong Kong-listed shares dipped modestly on the news, but investors more or less took the massive share issuance in their stride.
Shunfeng shares have risen more than tenfold in the past year, despite some analysts’ concerns about the company’s strategy.
Having in March proposed changing its name from Shunfeng Photovoltaic International to just Shunfeng International – a reflection of its desire to push into other renewables – the company has changed tack, and now intends to adopt the name Sunfu International Limited.