ET Energy Plans to Raise $61 Million for Working Capital, M&ABloomberg News
Co. plans to buy two U.S. project developers for expansion
Co. expects listing on OTC market by second half of 2016
ET Energy Co., a Chinese developer of solar farms, plans to raise as much as 400 million yuan ($61 million) through the over-the-counter market in China for acquisitions and working capital.
The company plans to buy two project developers in the U.S. for expansion into that market, Chief Executive Officer Dennis She said in an interview in Shanghai.
“The stability of U.S. solar-power projects will be the best," said She.
The Nanjing, China-based company also expects a listing on the OTC equity market to be completed by the second half of the year, said She.
China’s so-called third board where shares are traded over the counter has spurred interest at small- and medium-sized companies because it doesn’t set financial barriers for a listing and investors are mainly from institutions.
ET Energy last year raised 300 million yuan through the OTC market from five institutional investors before the listing.
The company, backed by Tsing Capital and NewMargin Ventures, plans to set up a clean energy fund to help it build 500 megawatts of rooftop solar projects by the end of 2017 in the U.S. and China, said She. China will have 300 megawatts of the capacity, while the U.S. will account for the remainder.
ET Energy will provide 1 billion yuan for the fund and will take a 30 percent stake, he said, adding that the company may cooperate with the Bank of Jiangsu Co. and the Shanghai Pudong Development Bank Co. on the fund.
— With assistance by Feifei Shen