CDH, Oriza-backed CSI Solar enjoys strong Star Market debut

CSI Solar sold 541m shares at CNY 11.1 apiece. The stock closed at CNY 13.05 on the first trading day on June 9 with a market capitalization of CNY 47bn. It was trading at CNY 14 as of midday on June 12.

CDH and Oriza, which carved out the business from NASDAQ-listed Canadian Solar, are the two largest external shareholders with 5.33% and 5.2% respectively prior to the listing. These positions were reduced to 4.53% and 4.42% after the IPO.

CICC Capital is also among the largest external shareholder; it reduced its stake from 2.67% to 2.27% after the offering. All three investors are subject to a 12-month lockup period. Canadian Solar held 74.9% prior to the listing and 63.6% after. Employees hold the remaining equity.

In 2020, Canadian Solar raised CNY 1.78bn as part of a carve-out of various China-based assets. CDH and Oriza invested a combined CNY 1.5bn in CSI Solar, giving it an equity valuation of CNY 7.5bn.

CSI Solar focuses on the module and system solutions (MSS) segment, which includes rooftop solar units. Its major product is crystalline photovoltaic modules. It also provides power plant construction and management services.

The company recorded revenue of CNY 2.3bn, CNY 2.8bn, and CNY 4.75bn from 2020 to 2022. A net profit of CNY1bn in 2020 swung to a loss of CNY 410m in 2021, and recovered to CNY 2bn in 2022, according to a prospectus.

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• Topics
• Greater China
• IPO
• Technology
• Industrials
• China
• Cleantech
• CDH Investments Management
• Oriza
• CICC