Daqo New Energy's subsidiary Xinjiang Daqo announces proposed private offering of RMB11 Billion in ordinary shares for its 100,000 MT polysilicon expansion project in China
Daqo New Energy Corp. (NYSE: DQ) announced a private offering of ordinary shares through its subsidiary Xinjiang Daqo, aiming to raise approximately RMB11 billion for its 100,000 MT polysilicon expansion project in Inner Mongolia, China. This project is set to commence construction in March 2022 and is expected to be completed by the third quarter of 2023. The funds will primarily support the expansion, contributing to Daqo's position as a leading polysilicon manufacturer for the solar PV industry.
- Raising approximately RMB11 billion through a private offering to fund the polysilicon expansion project.
- Construction expected to enhance production capacity, aiding growth in the solar PV market.
- Potential for shareholder dilution due to the issuance of new shares.
- Inherent risks related to global demand and market conditions that could affect project success.
SHANGHAI, Jan. 24, 2022 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy," the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that its subsidiary, Xinjiang Daqo New Energy ("Xinjiang Daqo"), intends to offer ordinary shares, subject to market conditions and other factors, in a private offering to qualified institutional buyers in compliance with the Shanghai Stock Exchange Science and Technology Innovation Board (the "STAR Market") in China for its 100,000 MT polysilicon expansion project.
The gross proceeds of the private offering are expected to be approximately RMB11 billion, the majority of which will be used to fund Xinjiang Daqo's 100,000 MT polysilicon expansion project in Baotou, Inner Mongolia, China. The construction of this project is expected to commence in March 2022 and to be completed in the third quarter of 2023.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufactures, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 105,000 metric tons and is one of the world's lowest cost producers of high-purity polysilicon.
For more information, please visit www.dqsolar.com
Daqo New Energy Corp.
Investor Relations
Email: dqir@daqo.com
Christensen
In China
Mr. Rene Vanguestaine
Phone: +86 178 1749 0483
rvanguestaine@christensenir.com
In the U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@Christensenir.com
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar statements. Among other things, Xinjiang Daqo's private offering and project expansion plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company's ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company's ability to lower its production costs; changes in the political and regulatory environment; and the duration of COVID-19 outbreaks in China and many other countries and the impact of the outbreaks and the quarantines and travel restrictions instituted by relevant governments on economic and market conditions, including potentially weaker global demand for solar PV installations that could adversely affect the Company's business and financial performance. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
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FAQ
What is the purpose of Daqo New Energy's private offering of RMB11 billion?
When will the construction for Daqo's polysilicon expansion project start?
How will the private offering impact Daqo's shareholders?
What are the risks associated with Daqo's expansion project?
