Sky Solar Delays IPO for Second Time Amid Supply Glut

Nov. 12 (Bloomberg) — Sky Solar Holdings Ltd., a Chinese
renewable-energy developer, has delayed its U.S. initial public
offering for the second time and cut by more than two-thirds the
amount it seeks to raise.

The company, which would have been the first Chinese solar
maker to list in the U.S. since 2010, postponed pricing
yesterday after first failing to sell equity on Nov. 7. Sky
Solar over the past week cut its target to $48 million from $150
million, according to regulatory filings. It also lowered its
pricing range by more than one-third, to as little as $7 for
each American depositary receipt.

Shares of Chinese solar manufacturers have slumped the last
four years as a global supply glut pushed down panel and
component prices, and import tariffs imposed by Europe and U.S.
crimped demand. The 21-member Bloomberg Intelligence Global
Large Solar Index has lost 25 percent this year. China, the
world’s largest market, is expected to add 10 gigawatts of solar
installations this year, compared with the government’s goal of
13 gigawatts, the People’s Daily reported Nov. 9, citing Liang
Zhipeng, deputy director of renewable energy in the National
Energy Administration.

“The real solar demand in China is disappointing,” Gordon Johnson, an analyst at Axiom Capital Management in New York,
said yesterday in a telephone interview. “The massive
oversupply in solar products, including modules and wafers, has
weighed on the solar prices.”

Hong Kong-based Sky Solar declined to comment on the reason
for the postponed listing, canceling media interviews scheduled
to discuss the IPO.

Climate Accord

JinkoSolar Holding Co., a Shangrao, China-based solar
manufacturer, raised $64.2 million in its U.S. IPO in May 2010,
while Daqo New Energy Corp., which produces polysilicon for use
in photovoltaic modules, sold shares worth $76 million in
October of that year.

President Barack Obama pledged deeper U.S. cuts in
greenhouse-gas emissions and China will for the first time set a
target for capping carbon emissions under an agreement between
the world’s two biggest economies.

(An earlier version of this story corrected the location of
the company in the fifth paragraph.)

To contact the reporters on this story:
Belinda Cao in New York at
lcao4@bloomberg.net;
Justin Doom in New York at
jdoom1@bloomberg.net

To contact the editors responsible for this story:
Nikolaj Gammeltoft at
ngammeltoft@bloomberg.net
Richard Richtmyer

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