Daqo New Energy Corp. postponed an initial public offer in January. Two days ago, it filed new documents with the Securities & Exchange Commission suggesting a $100 million IPO may be back on the table.
The new filing lays out a business plan that is scaled back in one measure and more aggressive in another. It also points out that sales have doubled so far this year – growth that could interest investors.
Daqo is a Chinese manufacturer of polysilicon used by solar companies Yingli Green Energy, Solarfun, Solargiga, China Sunergy and Tianwei New Energy to produce photovoltaic products. It boasts it is one of largest polysilicon companies in China.
Taqo has nonetheless scaled back its expansion plans. In its January filing with the SEC, it projected production capacity of 3.300 metric tones by September 2009.
Its updated filing on Aug. 18 says this same level of production capacity (3,300 metric tones) was in place as of June 2010. Plans now call for an expansion to 7,300 metric tonnes by the end of 2012, instead of the 9.300 metric tonnes projected in January.
At the same time, the company is more aggressively pursuing vertical integration. It plans to begin commercial wafer manufacturing in the first quarter of 2011. Module production already has begun with solar cells it buys from other makers. As of June, module production capacity was 50 megawatts. It will grow to 200 megawatts in the first quarter of 2011.
“We also intend to enter into the cell manufacturing business in the future,” the documents says – a new addition to the business plan.
In its January papers, the company’s goal was to expand into module manufacturing and solar power system integration and installation. It offered few details.
Business so far this year appears solid. The company’s revenue for the first six months of the year doubled to $98 million from $49 million for the same period in 2009. Profits rose more slowly, to $18 million from $14 million. For all of 2009, sales were $111 million and net income was $30 million.
Daqo said it would use the money from an IPO to expand its polysilicon and module businesses and to enter wafer manufacturing. It is not the only Chinese solar company to balk on an IPO this year. Both Trony Solar Holdings and JinkoSolar Holding have back away from selling shares to the public.
Posted by Mark Boslet 
