- The stock price of Daqo New Energy Corp (NYSE: DQ) increased by over 10% pre-market. This is why it happened.
The stock price of Daqo New Energy Corp (NYSE: DQ) – a leading manufacturer of high-purity polysilicon for the global solar PV industry – increased by over 10% pre-market. Investors are responding positively to Daqo New Energy announcing that the company’s major operational subsidiary Xinjiang Daqo New Energy has completed its IPO process and started trading on the Shanghai Stock Exchange’s Sci-Tech innovation board (SSE, code: 688303) on July 22, 2021.
Xinjiang Daqo had issued 300 million shares representing approximately 15.58% of the total 1.925 million shares outstanding after the IPO. The shares were issued at a public offering price of RMB 21.49 per share and the total gross proceeds of the IPO are approximately RMB 6.45 billion. And after the IPO, Daqo New Energy owns approximately 80.7% of Xinjiang Daqo. On the first trading day of July 22, 2021, Xinjiang Daqo’s shares closed at RMB 61.11 per share, up 184.4% as compared to the IPO price.
KEY QUOTES:
“The successful IPO of Xinjiang Daqo marks a very important milestone for the Company. We greatly appreciate the constant hard work and dedication of our management and employees, customers, business partners and investors. We could not have made this happen without their unwavering support.”
“In many regions of the world, including China, solar PV has already reached grid parity, making it competitive with traditional fossil-fuel energies, even without government subsidies. In the near future, as both the costs of solar PV and energy storage continue to decline, we expect to achieve broader grid parity for solar PV and energy storage, which will start a new chapter for the global energy industry.”
“Daqo entered the solar polysilicon industry more than a decade ago and has become a leading player with a most competitive cost structure and first-class quality. With access to the fast-growing capital market in China, we are committed to focus on our core business, continue our efforts on cost reduction and quality improvement, further invest in R&D and innovation and expand our business to new areas such as semiconductor-grade polysilicon.”
— Guangfu Xu, Chairman of Daqo New Energy and Xinjiang Daqo
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
