Sky Solar, a China-based solar power producer backed by investors including corporate joint venture IDG-Accel, has set the range for an initial public offering that could net it $150m.
The company will issue 12.5 million American Depositary Shares (ADSs), each representing 8 normal shares, on Nasdaq priced between $10 and $12 each.
The underwriters have the 30-day option to acquire a further 1.75 million ADSs, which could increase the proceeds to $171m.
Sky Solar operates a 198 MW portfolio of solar PV plants across Europe, Japan and Canada. In 2012 it transitioned from a business model of building and selling the plants to maintaining them and selling the power directly.
Sky Solar made a $53.9m loss in 2013 from revenues of almost $36.5m, down from a $26.9m profit and $203.8m revenues the preceding year.
IDG-Accel, a joint venture between data and publishing firm IDG and venture capital firm Accel Partners, is Sky Solar’s second largest shareholder, behind chairman Weili Su, and owns a 24.2% stake that will be diluted to 18.7% through the offering.
The company intends to use $40m of the proceeds to support construction of solar photovoltaic projects in Japan, a further $40m for projects in Latin America and $10m to develop its project pipeline in other territories.
FBR Capital Markets, Cowen and Company, Roth Capital Partners and Northland Securities are acting as underwriters for the offering.
– Photo courtesy of Sky Solar Group