North Coast Solar Stocks

December 10, 2009

Trony Solar IPO shelves indefinitely-underwriter

Filed under: STRI, TRO — Tags: , , , , , , — Jason @ 11:01 am

Thu Dec 10, 2009 11:01am EST

* Company has no new timetable for launching IPO

* IPO was expected to price in $9-$11 range

By Clare Baldwin

NEW YORK, Dec 10 (Reuters) – Chinese thin film solar company Trony Solar Holdings Co Ltd has postponed its initial public offering indefinitely due to weak market conditions, an underwriter said on Thursday.

The Shenzhen, China-based company had expected shares to sell for between $9 and $11 apiece, according to its most recent prospectus.

There is no new timetable for the launch of the shares, which were to have traded on the New York Stock Exchange under the ticker symbol “TRO.”

Solar companies have struggled this year as prices for their cells and panels have fallen by half because of an oversupply in the market. But demand has begun to pick up, raising hopes the industry will resume its steep growth path in 2010.

Despite the pickup, solar companies trying to go public are still struggling. In November, Connecticut-based STR Holdings Inc (STRI), which provides encapsulants that protect a solar module’s semiconductor circuit, priced below an already-reduced expected range.

Chinese solar manufacturers typically have lower production costs, but tough competition in the sector and sluggish sales for the renewable energy systems outside China likely hurt the launch, said IPO Boutique senior managing partner Scott Sweet.

“The playing field is getting extremely crowded,” Sweet said. “Overseas, the sales have been light and some of the subsidies for solar have been pulled.”

Trony Solar reported revenue of 254.6 million yuan ($37.3 million) for the three months that ended Sept. 30, up 44.8 percent from a year before, and net profit of 72.5 million yuan, up 61.5 percent.

Trony Solar said in a regulatory filing the company planned to sell 15 million American Depositary Shares and shareholders would sell an additional 4.5 million shares, for a total of 19.5 million shares.

JPMorgan Special Situations (Mauritius) Ltd and Intel Capital Corp, which currently own a combined 11.9 percent of the company, are each selling half of their shares.

The offering is being led by J.P. Morgan and Credit Suisse.

(Reporting by Clare Baldwin, Steve Eder and Matt Daily; editing by Gerald E. McCormick and Maureen Bavdek)

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