Shares of China's Canadian Solar rise post-IPO
NEW YORK, Nov 9 (Reuters) - Shares of Canadian Solar Inc. (CSIQ.O: Quote, Profile, Research), a Chinese maker of solar modules that convert sunlight into electricity, rose as much as 11.5 percent on Thursday, the first day of trading after a $115.5 million initial public offering.
The company, which has manufacturing plants in China, but is incorporated in Canada, on Wednesday priced 7.7 million shares at $15 each, the high end of a $13 to $15 range.
Canadian Solar sold 6.3 million shares, while other stockholders sold 1.4 million. The 7.7 million shares represent a 28 percent stake in the company. Canadian Solar's IPO gave the company a market value of about $409 million.
In regulatory filings, Canadian Solar said it plans to use net IPO proceeds to buy solar cells and silicon raw materials and to expand its manufacturing operations.
The company builds products for residential, commercial and industrial use. It is based in Jiangsu, China. Deutsche Bank Securities Inc. and Lehman Brothers Inc. arranged the IPO.
Canadian Solar shares rose $1.27, or 8.5 percent, to $16.27 in afternoon trading on the Nasdaq, after earlier rising to $16.73.
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