Tianwei Yingli New Energy Resources Co. is preparing for an overseas initial public offering, on the heels of its larger rival Suntech Power (NYSE: STP) based in eastern China.
As the country's second biggest integrated solar cell manufacturer, Tianwei Yingli plans to debut at the New York Stock Exchange this year with the aim of collecting approximately CNY 3 billion of proceeds, people close to it said.
The company, based in Baoding, a midsize city in the northern province of Hebei, was founded in 1998. Presently, it is owned by two local firms, Tianwei Baobian Electric Co. (600550. SH) with a 51 percent stake and Yingli Group the remaining.
Tianwei Baobian has just become the second largest shareholder in a silicon producer located in southwestern China with an annual output of more than 1,000 tons, thus providing adequate raw materials to Tianwei Yingli.
Reportedly, a consortium led by Goldman Sachs may succeed in a bid to acquire a 25 percent stake in Tianwei Yingli after beating JPMorgan and Warburg Pincus.
The forthcoming IPO is believed to be encouraged by Suntech Power.
Based in Wuxi of Jiangsu Province, Suntech Power last December sold American Depository Shares at USD 15 a piece and collected as much as USD 400 million at the New York Stock Exchange, thus becoming China's largest private company listed on the US market.The shares jumped 41 percent on the first day on investors' strong demands. The price hit a record high of USD 45.95 on January 23. jetzt auf 35 gefallen
Zhengrong Shi, founder and chairman of Suntech Power, has become the richest businessman in China with a personal wealth of almost USD 2 billion, reports said, as his company continues to perform well at the big board.
The success is bound to make US investors familiar with Chinese solar companies and willing to pour huge investments to Tianwei Yingli, they added.
Tianwei Yingli will see the production capacity surge by six times once finishing the Phase 3 construction of the Multi Crystal Silicon Ingot project in 2008.
The production capacity of solar cell, also called photovoltaic cell, is to jump from the current 70 megawatts to 570 megawatts, silicon wafer from 60 megawatts to 560 megawatts, as well as piles from 100 megawatts to 600 megawatts.
The project, with an investment of CNY 3.6 million, is scheduled to start construction in the coming April or May.
Suntech Power, the No. 1 in China, is expected to manufacture 300 megawatts solar cells and 360 megawatts piles in 2007.
Suntech once planned to acquire some stake in Tianwei Yingli through share swaps. But the plan failed because the latter needs cash only, insiders revealed. The two have joined hands recently, however.
They on January 8 signed an initial agreement, under which Suntech is to participate in the aforesaid expensive project. They are likely to extend cooperation to the overseas markets.
Chinese PV firms, including the two, sell the lion's share of their products to overseas markets, especially to Germany.
China's top economic planning agency, the National Development and Reform Commission vows to pour CNY 10 billion over the next five years to promote the solar energy development. The PV cell installed capacity is estimated to climb to 600 megawatts by 2010.
As the country's second biggest integrated solar cell manufacturer, Tianwei Yingli plans to debut at the New York Stock Exchange this year with the aim of collecting approximately CNY 3 billion of proceeds, people close to it said.
The company, based in Baoding, a midsize city in the northern province of Hebei, was founded in 1998. Presently, it is owned by two local firms, Tianwei Baobian Electric Co. (600550. SH) with a 51 percent stake and Yingli Group the remaining.
Tianwei Baobian has just become the second largest shareholder in a silicon producer located in southwestern China with an annual output of more than 1,000 tons, thus providing adequate raw materials to Tianwei Yingli.
Reportedly, a consortium led by Goldman Sachs may succeed in a bid to acquire a 25 percent stake in Tianwei Yingli after beating JPMorgan and Warburg Pincus.
The forthcoming IPO is believed to be encouraged by Suntech Power.
Based in Wuxi of Jiangsu Province, Suntech Power last December sold American Depository Shares at USD 15 a piece and collected as much as USD 400 million at the New York Stock Exchange, thus becoming China's largest private company listed on the US market.The shares jumped 41 percent on the first day on investors' strong demands. The price hit a record high of USD 45.95 on January 23. jetzt auf 35 gefallen
Zhengrong Shi, founder and chairman of Suntech Power, has become the richest businessman in China with a personal wealth of almost USD 2 billion, reports said, as his company continues to perform well at the big board.
The success is bound to make US investors familiar with Chinese solar companies and willing to pour huge investments to Tianwei Yingli, they added.
Tianwei Yingli will see the production capacity surge by six times once finishing the Phase 3 construction of the Multi Crystal Silicon Ingot project in 2008.
The production capacity of solar cell, also called photovoltaic cell, is to jump from the current 70 megawatts to 570 megawatts, silicon wafer from 60 megawatts to 560 megawatts, as well as piles from 100 megawatts to 600 megawatts.
The project, with an investment of CNY 3.6 million, is scheduled to start construction in the coming April or May.
Suntech Power, the No. 1 in China, is expected to manufacture 300 megawatts solar cells and 360 megawatts piles in 2007.
Suntech once planned to acquire some stake in Tianwei Yingli through share swaps. But the plan failed because the latter needs cash only, insiders revealed. The two have joined hands recently, however.
They on January 8 signed an initial agreement, under which Suntech is to participate in the aforesaid expensive project. They are likely to extend cooperation to the overseas markets.
Chinese PV firms, including the two, sell the lion's share of their products to overseas markets, especially to Germany.
China's top economic planning agency, the National Development and Reform Commission vows to pour CNY 10 billion over the next five years to promote the solar energy development. The PV cell installed capacity is estimated to climb to 600 megawatts by 2010.
