Neo Solar shares sale raises NT$3.11bn

By Lisa Wang  /  Staff reporter

Sat, Oct 26, 2013 - Page 13

Neo Solar Power Corp (新日光), the nation’s biggest solar cell maker, yesterday said it raised NT$3.11 billion (US$105.6 million) by issuing 130 million new shares, making it the biggest fund-raising deal in Taiwan’s solar sector this year.

Neo Solar sold its new shares at NT$23.9 per share, a 19 percent discount compared with the stock’s closing price of NT$29.65 on Thursday. The shares yesterday dropped 1.52 percent to NT$29.2.

Neo Solar said it plans to use the proceedings to improve the company’s financial structure and to replenish its operational capital.

As of Oct. 1, Neo Solar has raised NT$1 billion by issuing corporate bonds.

Separately, solar material maker Gigasolar Materials Corp (碩禾) yesterday held a groundbreaking ceremony for a ¥5 billion (US$51.3 million) ground mounted solar system plant in Japan’s Fukushima Prefecture. It said it expects to complete construction of the plan by the end of next year.

Power generated by the plant will be supplied to Tohoku Electric Power Co. The new plant will have 17 megawatts in annual capacity, which will generate 20 million units of electricity a year for 5,000 households, Gigasolar said.

In a separate statement, Gigasolar said the Japanese solar plant would have a positive impact on the company’s revenue and profitability as the Japanese government has offered to purchase solar power at ¥47 per unit, which is twice the price offered by the Taiwanese government.

Gigasolar also said it will not build or lease any new solar plants in this country after the government announced plans to slash solar power feed-in tariffs by 16 percent annually to less than NT$6 per kilowatt hour for ground mounted solar system operators next year.

Gigasolar said it has built several solar power plants locally, with capacity totaling about 5 megawatts at the end of this year.