Daqo New Energy's Subsidiary Xinjiang Daqo successfully completes its private offering on the Shanghai Stock Exchange

Rhea-AI Summary

Daqo New Energy Corp. (NYSE: DQ) announced through its subsidiary Xinjiang Daqo that it has completed a private offering on the Shanghai Stock Exchange. The offering raised approximately RMB11 billion by issuing 212,396,215 shares, equivalent to 9.94% of total shares outstanding. The shares were priced at RMB51.79 each, allowing Daqo to maintain a significant ownership of 72.68% in Xinjiang Daqo post-offering. This strategic move aims to bolster the company's financial position within the solar PV industry.

Positive

• Successfully raised approximately RMB11 billion to enhance financial positioning.
• Maintains substantial ownership of 72.68% in Xinjiang Daqo after the offering.

Negative

• Dilution of existing shares due to issuance of 212,396,215 new shares.

SHANGHAI, July 6, 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 the Company's major operational subsidiary, Xinjiang Daqo New Energy ("Xinjiang Daqo"), had successfully completed its private offering on the Shanghai Stock Exchange.

Xinjiang Daqo has issued 212,396,215 shares, representing approximately 9.94% of its total 2,137,396,215 shares outstanding immediately after the completion of the private offering. The shares were issued at a private offering price of RMB51.79 per share and the total gross proceeds to Xinjiang Daqo of the private offering are approximately RMB11 billion. Upon completion of the private offering, Daqo New Energy beneficially owns approximately 72.68% of Xinjiang Daqo's shares.

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
Phone: +86-187 1658 5553
Email: dqir@daqo.com

Christensen

In China
Mr. Rene Vanguestaine
Phone: +86 178 1749 0483
rvanguestaine@christensenir.com

In the U.S.
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com

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SOURCE Daqo New Energy Corp.

FAQ

What was the outcome of Daqo New Energy's private offering?

Daqo New Energy's subsidiary Xinjiang Daqo successfully completed a private offering, raising approximately RMB11 billion.

How many shares were issued in the private offering by Xinjiang Daqo?

A total of 212,396,215 shares were issued in the private offering.

What percentage of shares does Daqo New Energy own in Xinjiang Daqo after the offering?

After the offering, Daqo New Energy owns approximately 72.68% of Xinjiang Daqo's shares.

What was the price per share during Xinjiang Daqo's private offering?

The shares were issued at RMB51.79 per share during the private offering.

How does the private offering impact existing shareholders of Daqo New Energy?

The private offering may lead to dilution of existing shares due to the issuance of additional shares.