Sinosol plans to raise up to €79.2 million ($122.9 million) through an initial public offering, a move made at a time when investor confidence on the stock market remains shaky, the company said Thursday.
Sinosol, which sellssolararrays and develops solar parks, is offering €11 ($17) to €15 ($23.18) per share. The sales are scheduled to end on June 24, and trading of the Germany company’s shares would start on the Frankfurt Stock Exchange on June 25.
The announcement came on the first day of Intersolar in Munich, touted as the world’s largest solar technology conference. The day before, Germany’s solar industry association, BSW, said German solar companies are expected to invest more than €7 billion ($10.9 billion) for the next three years.
Sales are projected to grow from €7 billion ($10.79 billion) in 2007 to €13 billion ($20.04 billion) in 2010, BSW said. Half of the anticipated sales will likely come from outside Germany.
Increasing its investment will help the industry compete in the global market, in which German companies have been leaders. But cuts in government subsidies, approved last week, will likely deflate the cushion that has supported a booming industry (see Solar Prices Set in Germany and German Solar Subsidies to Fall Less than Forecast).
Meanwhile, investors worldwide remain skittish, given the rising fuel cost and the fallout from the U.S. housing market. Analysts blamed the lackluster market for the lukewarm reception of EDP Renovaveis’s stock on its first day of trading on Euronex Lisbon exchange last week (see EDP REnovaveis Gets No Love).
Sinosol would hope to do better. The company buys solar panels from Chinese companies and assembles them for developing solar parks. Spain has been a prime market for the company.
Sinosol generated €35.6 million ($54.86 million) in sales and €2.2 million ($3.39 million) in pretax earnings in the first half of its fiscal year, which ends in September.
The company, started in 2006, plans to use the money for expanding its business abroad and buy new technologies.