Major polysilicon manufacturer Xinjiang Daqo New Energy Co. Ltd. (688303.SH) will soon list on Shanghai’s Nasdaq-style STAR Market, with subscriptions beginning on Tuesday.
Xinjiang Daqo, a unit of U.S.-listed Daqo New Energy Corp. Ltd., said it will use the about 6.1 billion yuan ($937.8 million) in targeted net proceeds from the listing to expand production capacity and thereby increase its market share, according to its prospectus.
The context: Xinjiang Daqo is one of four Chinese polysilicon-makers to get slapped with an import ban by the U.S. for their alleged links to human rights violations in Northwest China’s Xinjiang Uyghur autonomous region, which the company has denied. China has also denied such human rights violations are taking place.
Polysilicon is the main ingredient used to make solar panels, and Xinjiang accounts for 42% of global production capacity, according to data from new-energy consultancy InfoLink Consulting.
Xinjiang Daqo said in its prospectus that the U.S. sanctions won’t have a significant impact on their business as the country is not a significant market for its goods.
Author: Guo Yingzhe, Caixin Global