Daqo New Energy Corp. (DQ) on Friday announced filing by its subsidiary for a potential initial public offering. Daqo New Energy is among lead manufacturers of high-quality polysilicon used by the solar photovoltaic (PV) industry worldwide.

Xinjiang Daqo New Energy Co. Ltd. is a major operating subsidiary of Daqo New Energy. The subsidiary company submitted its IPO application and shares listing documents last day. The filings were made at and acknowledged by the Shanghai Stock Exchange.

Previously in June 2020, Daqo New Energy had shared its plan of listing shares of Xinjiang Daqo. Company was intending shares listing on Sci-Tech innovation board of the Shanghai Stock Exchange. The board is also known as STAR Market, created to support companies with innovative technologies in China.

As per documents filed for the IPO, Xinjiang Daqo is intending issuing not less than 286,764,706 shares. That comprises nearly 15% of company’s after IPO total share capital. Currently, Daqo New Energy is in possession of about 95.60% of subsidiary company’s shares. After the IPO, Daqo New Energy will be left with about 81.26% of stakes in Xinjiang Daqo.

The proceeds of the IPO depend upon actual sizing and price of the offering. But the company is intending utilizing the same mainly as capital expenditure for two of its projects. The projects are related to building two facilities for manufacturing of polysilicon. The funds so received will also be used for Xinjiang Daqo as working capital.

Company’s prospective projects include manufacturing facility to produce 35,000 MT of Phase 4B ultra-high-purity polysilicon annually. The product will be used in mono-crystalline solar PV wafers. . Amount required building that facility is nearly $514 million. The project will help company to cater with the growing need for mono-grade polysilicon. It will further strengthen company’s hold over the respective market.

For its another project, company is in requirement of $62 million in capital expenditures. The project is to build facility to manufacture semi-grade ultra-high-purity polysilicon for semiconductor wafers. The project will have annual manufacturing capacity of 1,000 MT.