North Coast Solar Stocks

December 10, 2009

Trony pulls IPO

Filed under: STRI, TRO — Tags: , , , , , , — Jason @ 5:08 pm

Thu Dec 10, 2009 5:08pm EST

* Trony Solar IPO postponed indefinitely — underwriter

By Clare Baldwin

NEW YORK, Dec 10 (Reuters) – Chinese thin film solar company Trony Solar Holdings Co Ltd (TRO) postponed indefinitely its IPO due to weak market conditions, an underwriter said.

“Most liquidity is gone for new names. Books are just closed,” said Morningnotes.com founder Ben Holmes.

Holmes said year-end initial offerings often struggle.

A CROWDED MARKET

Shenzhen, China-based Trony Solar posted increased revenue and profits compared with a year ago, but likely postponed its offering amid concerns about future profit growth, analysts said. The offering would have been worth about $241.5 million, according to a regulatory filing.

Despite signs of a pickup in the industry, solar companies trying to go public are still struggling.

In November, Connecticut-based STR Holdings Inc (STRI), which makes products to hold solar modules together and protect them, priced below an already-reduced expected range. And last week Danish wind and solar park developer Scan Energy 18SE.DE canceled its IPO on weak demand from investors.

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.”

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

Simmons and Co analyst Burt Chao said Trony may benefit by waiting.

“It seems like most people are getting pretty excited about solar headed into the first half of next year. It would behoove management teams to wait a little bit for that to materialize to get a little bit of the upswing and the momentum,” Chao said.

JPMorgan Special Situations (Mauritius) Ltd and Intel Capital Corp, which currently own a combined 11.9 percent of the company, had each planned to sell half of their shares. Underwriters were led by J.P. Morgan and Credit Suisse.

Three more IPOs are set to price on Thursday evening, including China-based Concord Medical Services Holdings Ltd, Ellington Financial LLC and KAR Auction Services Inc.

(Additional reporting by Steve Eder, Matt Daily and Laura Isensee; editing by Phil Berlowitz and Andre Grenon)

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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)

November 21, 2009

Trony Solar raises IPO target to $241.5 mln

Filed under: TRO — Tags: , , , , , — Jason @ 5:51 pm

Sat Nov 21, 2009 5:51pm EST

* Raises amount of IPO to $241.5 mln from $200 mln

* Selling total of 19.5 mln shares

* Expects shares to price between $9 and $11

NEW YORK, Nov 20 (Reuters) – Chinese thin film solar company Trony Solar Holdings Company Limited raised the amount of its initial public offering on Friday, adding to the buzz around the many U.S.-based publicly traded solar companies.

The firm said in a regulatory filing that it would raise as much as $241.5 million in its IPO, up from the $200 million it filed for last month. The Shenzhen-based company said it plans to sell 15 million American depositary shares while shareholders sell an additional 4.5 million shares.

It said in a filing with the U.S. Securities and Exchange Commission it expects the shares to price between $9 and $11.

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

The firm reported revenue of 254.6 million yuan ($37.1 million) in the three months ended Sept. 30, up 44.8 percent from a year ago, and net profit of 72.5 million yuan, up 61.5 percent from a year ago.

Trony Solar plans to debut on the New York Stock Exchange under the ticker “TRO.” Lead underwriters for the deal are J.P. Morgan and Credit Suisse. The underwriters may purchase an additional 2.925 million shares.

(Reporting by Clare Baldwin, editing by Matthew Lewis)

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