Suntech Power Raising Cash After Earnings (STP)
Suntech Power Holdings Co. Ltd. (NYSE: STP) is seeing shares take a hit this morning after the solar player filed to raise capital afterissuing earnings. The company’s profit slid to $1.8 million, or only $0.01 EPS. That is down from…
Suntech is not increasing production. It said that it plans to maintain photovoltaic cell production capacity at 1 gigawatt in 2009 until the situation gets better on the demand side of the equation.
As far as the filing, the company now plans to sell 20 million ADS shares, or 23 million shares if the overallotment option gets exercised. This would equate to roughly $300 million at today’s prices on a gross basis, and the market cap is listed as just under $2.5 billion as of yesterday’s close.
In early indications, shares look down 5.5% at $14.96 in early pre-market trading. Its 52-week range is $5.09 to $49.60.
JON C. OGG
MAY 21, 2009
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