Goldman, CDH-backed Himin Solar terminates IPO plan

According to a regular IPO application disclosure released by the China Securities Regulatory Commission (CSRC), Himin Solar's IPO evaluation procedure was terminated on June 27. Local media reported that the company applied for the termination itself, citing excessive non-operating assets and decreasing sales.

However, some domestic news sources tied the situation to an unfolding corruption scandal in Himin's home province of Shandong. On June 25, Sheng Huang, Shandong's deputy governor, was dismissed from the provincial party and placed under central government investigation on charges of bribery. Media subsequently claimed that an unnamed clean energy firm in Dezhou, a city in Shangdong, had purchased a large amount of land at only one-third of the market price.

Established in June 1995, Himin Solar is currently one of the two leading solar companies in Dezhou alongside Ecco Solar Group.

In January 2008, CDH and Goldman Sachs together invested $90.7 million in Himin for a 28% stake. CDH committed $46 million for a 14.19% stake, while Goldman put in another $44.8 million for the remaining 13.91%, China's 21st Century Business Herald reported.

This is the third cancellation of the company's floatation plan. Himin Solar reportedly considered listing in New York, Frankfurt or Hong Kong as early as in 2007, but this came to nothing. It returned three years later, hoping to launch an IPO in Shanghai but was forced to abandon it due to accusations of tax evasion.

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• Topics
• Greater China
• Cleantech
• China
• CDH Investments Management
• Goldman Sachs
• Cleantech