Green Energy Technology Inc (綠能科技), the nation’s top solar wafer maker, said yesterday its issue of new shares offered to investors that may raise as much as NT$1.55 billion (US$52.5 million) has been oversubscribed by about 14 times.
The company is aiming to issue 50 million new shares at NT$31 each. Among the shares issued, 80 percent will be subscribed by existing shareholders, including Tatung Group (大同集團), while employees and other investors will each subscribe to 10 percent.
“By April 16, Green Energy Technology had received 62,851 subscriptions for the 4.5 million shares to be sold publicly,” the Taoyuan-based company said in a statement.
Each subscription equals 1,000 common shares.
The sale of a 10 percent stake in Green Energy Technology gives investors a chance to buy into a company that supplies solar wafers used by solar-cell and module manufacturers in Taiwan, China, Japan, South Korea, India, Europe and the US.
However, falling prices of solar wafers last year pushed Green Energy into a net loss of NT$2.33 billion, or NT$8.92 per share, from a net profit of NT$1.72 billion, or NT$7.73 a share, in 2010. Revenues rose 5.37 percent to NT$18.11 billion from NT$17.19 billion in 2010, the company said in a financial report issued on March 22.
In the first three months of the year, the company posted accumulated sales of NT$2.76 billion, which were down 1.81 percent from the previous three months and 57.6 percent less than a year earlier, Green Energy Technology said on April 5.
The company said yesterday it plans to use the proceeds from the sale of new shares to strengthen its financial structure, adding that it has managed its cash flow well and reduced its inventory, as well as improving its cost competitiveness to negotiate the slowing solar market.
Shares of Green Energy Technology fell 1.63 percent to NT$33.1 yesterday, compared with the TAIEX’s 1.86 percent decline, according to stock exchange data.