First Solar, Inc. (NASDAQ:FSLR) announced today that it has raised $427.7 million after the closing of its most recent common stock offering. The company finished its offering of almost 10 million shares of common stock, including about 1.25 million shares which were issued and sold after the company exercised almost all of the over-allotment option through the underwriter.
Details On First Solar’s Public Offering
According to a statement from the company, First Solar, Inc. (NASDAQ:FSLR) sold the shares for $46 each. The company netted about $427.7 million from the public offering after removing discounts from underwriting andother estimated expenses in connection with the offering.
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The company said it plans to use the proceeds from the stock offering for “general corporate purposes, which may include acquisitions of under development photovoltaic solar power system projects,” investments in joint partnerships, expansion into new areas, or the development of various business units.
As of this writing, shares of First Solar, Inc. (NASDAQ:FSLR) were up almost 2 percent. The company’s stock plunged last week not long after the news about its stock offering was announced. At that time, it said that it would offer 8.5 million shares under the common stock offering.
First Solar Shows Off Profitable Opportunities
Trefis analysts said although the solar industry has seen some equity infusions through private placements, most of these infusions were made to solar companies which are laden with debt so that they could cover their needs for working capital. They note however that First Solar, Inc. (NASDAQ:FSLR)’s situation is different because its debt load is less than $600 million, while its cash and securities are almost $1 billion.
This highlights how the status of green companies is just beginning to change. Tesla Motors Inc (NASDAQ:TSLA) may be the green energy company that has changed its fate the fastest, but First Solar’s cash position shows that the industry as a whole may be about to turn a corner.
Goldman Sachs recently upgraded a few U.S. solar stocks, including First Solar.