On July 21, 2022, Xinjiang Daqo New Energy Co., Ltd. (under stock code 688303) (“Daqo” or the “Company”) announced that it had completed a private offering of A-shares (the “Project”). Daqo privately issued approximately 212 million A-shares at a price of RMB51.79 per share. The offering raised a total amount of RMB 11 billion, which will be invested primarily in a manufacturing project for high-purity silicon-based materials with a capacity of 100,000 tons per year as well as supplementing working capital. The Project is of great significance to the Company’s strategic planning and sustainable future development. This is the largest recent private seasoned offering of A-shares in the photovoltaic industry, the largest re-financing by an equity offering on the SSE Science and Technology Innovation Board and the largest private seasoned offering with a sole sponsor/underwriter under the A-share registration system.
Daqo was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange on July 22, 2021. It is the first Xinjiang company listed on this board and the first company offering China-related stock on the USA market and returning to the A-share market by split-off. The primary product of Daqo is high-purity polysilicon, which is mainly used in the production of photovoltaic silicon wafers. Such wafers are applied in the production of downstream photovoltaic cells, photovoltaic cell modules, photovoltaic power generation systems and other solar photovoltaic products.
JunHe advised Daqo on the listing on the Science and Technology Innovation Board, as well as on their investments and other projects and has been serving as the Company’s counsel for capital markets since 2020. In this Project, JunHe acted as the counsel of the issuer, cooperating closely with Daqo and the other intermediaries to complete the demonstration of the offering plan, the due diligence and the preparation of filing documents and responding to questions from the regulatory authorities within a short timeframe. With JunHe’s assistance, Daqo passed the examination of the Shanghai Stock Exchange and successfully completed the registration as required by the CSRC. JunHe maintained the prudent, efficient, and meticulous attitude it has kept in its past practice, and its dedication, professionalism and high level of service won unanimous recognition and high praise from the Company and the other intermediaries.
The Project was led by partners SHI, Tiejun and YI, Yisong, and partner SHEN, Na was responsible for the internal review.