Green Energy Technology Inc (綠能), the nation’s biggest solar wafer maker, yesterday said it planned to raise NT$950 million (US$32.98 million) by selling new common shares to finance the company’s long-term operations and to repay debt.
The fund-raising program came as the global solar industry started recovering from a prolonged over-capacity-driven slump resulting from industrial structuring.
Green Energy planned to issue 35.45 million new common shares at NT$26.8 per share to raise funds, the company said in a statement following a board meeting.
The price represented a 19.52 percent discount, compared with the stock’s closing price of NT$33.3 yesterday.
Parent company Tatung Group (大同) will fully subscribe to the share sale, indicating Tatung’s support for and confidence in Green Energy’s business outlook, the statement said.
San-Chih Semiconductor Co Ltd (尚志), a semiconductor arm of Tatung, yesterday said it planned to subscribe to all shares issued by Green Energy, according to a company statement filed to the Taiwan Stock Exchange.
Currently, San-Chih has a 23.73 percent share of Green Energy, the statement said.
The price of solar wafer is expected to rise by between 3 percent and 5 percent this month to about US$1 per unit from a month ago due to supply constraint, local market researcher TrendForce Corp (集邦科技) said, with the uptrend expected to carry into this month.
On Tuesday, local solar cell maker Solartech Energy Corp (昇陽) said that it has raised NT$1.125 billion by issuing 50 million common shares mostly via private placement, the company’s filing to the Taiwan Stock Exchange said. Each share is priced at NT$22.5, a discount of 18.92 percent from the share price of NT$27.75 on Monday, it said.
Solartech planned to use the proceeds to repay bank loans and to improve its financial structure.
The price of solar cells is expected to increase 0.26 percent to US$0.39 per watt this month from the prior month due to persistent strong demand, TrendForce said. Most solar cell makers are running their factories at high capacity, the research house said.