Chinese polysilicon maker GCL-Poly made an announcement yesterday on the completion of the placement of issuing no more than 2.036588 billion shares at HK $2.49/share dated on December 15.
The raised funds will be used for capital expenditure and general working capital purposes, according to the company’s previous statement.
The placement shares account for 7.52% of the total share capital after the issuance. After deducting the issuance expenses, the net proceeds from the placement were about HK $4.994 billion. Some 8.9% (about HK $445 million) of the net placing will be used for general working capital purposes, and the remaining 91.9% (about HK $4549 million) will be used for the silane fluidized bed process granular silicon and supporting silicon powder project in Inner Mongolia and the silane fluidized bed process granular silicon project of Jiangsu Zhongneng Silicon Technology Development Co., Ltd, a high-purity polysilicon manufacturer wholly controlled by GCL-Poly.
According to statistics of Solarbe Consulting, the company has a silicon material capacity of 60,000 tons in Changji, Xinjiang and 66,000 tons in Xuzhou, Jiangsu respectively, of which the total capacity of granular silicon is 30,000 tons. Through this placement financing, the company’s granular silicon production capacity and total silicon material production capacity will be further expanded in the next few years, enhancing its leading position in the industry.
