China-based thin-film photovoltaic product manufacturer Trony Solar Holdings Company Ltd raised the target for its initial public offering, or IPO, on Friday to $241.5 million from the previous $200 million. The company's ADS been approved for listing on the New York Stock Exchange under the symbol "TRO".
In a filing with the U.S. Securities and Exchange Commission, the company said it plans to offer 15 million American Depositary Shares or ADSs, while its shareholders will sell an additional 4.5 million ADSs. The company expects the IPO to price between $9 and $11.
JPMorgan Special Situations (Mauritius) Limited and Intel Capital Corp, which currently own a combined 11.90% of the company, are each selling half of their shares.
Trony Solar has granted the underwriters an option for a period of 30 days to purchase from it up to 2.925 million additional shares, assuming an initial public offering price of US$10.00 per share, the midpoint of the estimated public offering price range.
The company intend to use about $100 million of the net proceeds from the offering to expand its manufacturing facilities, and about $30 million to repay an outstanding related-party loan. The remaining portion of the net proceeds is expected to be used for working capital and other general corporate purposes.
J.P. Morgan Securities Inc. and Credit Suisse Securities (USA) LLC are acting as lead underwriters for the deal.
Trony Solar commenced operations in 1993, became a manufacturer of thin film solar batteries in 1995 and commenced commercial production in 1998. The company expanded its annual manufacturing capacity to 5 megawatts, or MW, began manufacturing PV modules for off-grid systems on a commercial scale in 2006, and gradually increased its annual manufacturing capacity to 45 MW by October 2008. As at the end of August 2009, the company's annual manufacturing capacity was 115 MW.
For the three months ended September 30, 2009, Trony Solar reported a 61.5% increase in net income from the year-ago period to 72.5 million yuan, or US$10.6 million, and an 81.1% increase in revenues to 245.6 million yuan, or $37.3 million.
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