Yingli Discounts Shares to Raise Funds to Build ProjectsEhren Goossens
Yingli Green Energy Holding Co., the largest solar-panel maker, will sell 25 million shares at a 17 percent discount as it raises money to build power plants.
The American depositary receipts, which represent one ordinary share, will be sold for $3.50 apiece, the Baoding, China-based company said in a statement today. Underwriters of the sale will have a 30-day option to buy as many as 3.75 million more shares.
The company expects $83 million in proceeds, $55 million of which it will use for a fund to invest in solar farms in China. Yingli is building solar projects to diversify its operations after the price of panels plunged.
Yingli, which closed yesterday at $4.22, fell 13 percent to $3.68 at the close in New York, the most decline since May 22.
Deutsche Bank AG and Goldman Sachs Group Inc. are acting as the joint bookrunners for the offering and HSBC Holdings Plc is acting as a co-manager.