Hanwha SolarOne, the world’s eighth largest PV module supplier last year, has pulled the plug on its ongoing share offering amid significant headwinds for its stock price, raising just 30% of the $70m it had hoped to drum up.
November SolarOne announced it had tapped Credit Suisse to raise up to $70m selling
its Nasdaq-listed American Depository Shares on an ongoing basis, with the
money to be used upgrading its factories and fueling the expansion of its
downstream business in China.
that SolarOne made that announcement – 15 November 2013 – shares in the company
closed at $4.04. Since then, however, the company’s share price has fallen to
$2.96, significantly denting its ability to raise money.
Credit Suisse raised $21m for SolarOne by selling 6.7 million shares at an
average price of $3.20, SolarOne said today.
the share offering, SolarOne “maintained a conservative trading posture … in
light of the lower stock price, potential shareholder dilution and availability
of other financing options”, says chief executive Jay Seo, who is also head of
the company’s incipient downstream business.
recent slide in SolarOne’s share price is not unique, it has been especially
severe compared to similarly positioned rivals.
bottoming out at $0.83 in late 2012, SolarOne shares mirrored the broader solar
industry by going on a tear, peaking last October at $5.55 apiece. Since then,
they have lost 46% of their value.
several other vertically-integrated Chinese PV manufacturers have also fallen
since last October, with Yingli Solar down 24% and Trina Solar down 16%.
however, have either seen their share prices remain flat during that period (JA
Solar) or even increase (JinkoSolar and Canadian Solar).
past three months SolarOne revealed two blockbuster memoranda of understanding
– with Jiangsu Zhongtian Technology in December and Shanghai HuiTianRan in
January – regarding potential “long-term strategic partnerships” addressing
China’s booming downstream PV sector, where the company has large ambitions.
however, has yet been finalised.
Trina, Jinko and Canadian Solar, SolarOne has not yet returned to
profitability, and swallowed a net loss of $75.2m in the third quarter. The
company has not yet published its full-year figures.
global PV market is expected to grow substantially in 2014, and average selling
prices for modules are likely to rise on a global basis, there are several
reasons for concern among companies like SolarOne.
Beijing sent Chinese solar stocks down by announcing that it wants to see just
10GW of PV installed across China this year – meaning the market may actually
shrink compared to 2013.
also the prospect that the US will broaden the punitive duties already placed
on Chinese modules using domestically made cells to those using cells made in
Taiwan – potentially placing a large burden on companies like SolarOne to build
module-assembly plants overseas.