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;
Justin Doom in New York at

To contact the editors responsible for this story:
Nikolaj Gammeltoft at
Richard Richtmyer

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
Sign up for our free monthly newsletter →

Want to learn how we help our clients put it all together? Contact us