CSIQ - Canadian Solar's CSI subsidiary eyes June 9 listing on Shanghai exchange

2023-06-07 09:49:50 ET

Canadian Solar ( NASDAQ: CSIQ ) said Wednesday its majority-owned CSI Solar subsidiary will start trading on the Shanghai Stock Exchange's Sci-Tech Innovation Board beginning June 9 .

CSI Solar sold 541M shares last week to raise 6B yuan (~$845M) in China's fifth-largest IPO this year, representing a 15% stake in the company.

Canadian Solar ( CSIQ ) shares have been roughly flat since the Inflation Reduction Act passed on August 16, while U.S. peers such as First Solar and Maxeon Solar have soared, which could explain why CSI is listing in China .

"We see the success of the China IPO as a key milestone for CSIQ to obtain access to low-cost of capital in the current capital-constrained environment," Roth MKM analyst Philip Shen wrote recently when he raised his stock price target for Canadian Solar ( CSIQ ) to a Street-high $70/share from $55.

Shen said the IPO valuation beat his expectations by $280M, and he values Canadian Solar's ( CSIQ ) remaining 64% stake in CSI Solar at $3.6B.

More on Canadian Solar:

• Financial and valuation comparison to sector peers
• Analysis: Canadian Solar: Strong Growth Prospects With A Low Valuation
• Stock price return: Up 31% YTD, up 13% in the past 12 months

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