GCL-Poly raises HK$3.68 billion with new placement

Chinese power company GCL-Poly Energy Holdings (HKG:3800) said today it has completed the placement of 1.3 billion new shares at HK$2.83 (US$0.36) per share to raise HK$3.68 billion (US$474.8 million). Upon completion, the number of issued shares is expected to increase from 11 billion to more than 12.4 billion.

The placement is expected to enable the company to expand its shareholding base, enhance its financial status and lower its debt. The funding is also planned to strengthen the company’s capital structure so it can enter into new business developments.

GCL-Poly manufactures polysilicon for the solar industry and also operates 18 co-generation plants for steam and electricity in China's Jiangsu and Zhejiang provinces, in addition to a wind farm and an incineration plant.

The company’s stock closed today down 3.82 percent at HK$3.27.

In June, the company announced plans to purchase Xuzhou, Jiangsu-based Jiangsu Zhongneng Polysilicon Technology Development for HK$26.3 billion (US$3.39 billion). GCL-Poly said it planned to fund the acquisition of China's largest polysilicon and solar wafer maker through US$200 million in cash, selling 10 million new shares, and selling US$250 million of secured notes (see China's GCL-Poly Energy makes $3.4 billion solar buy).