Canadian Solar’s Subsidiary CSI Solar Submits Application Documents For Initial Public Offering On China’s STAR Market

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Canadian Solar Inc. (the “Company” or “Canadian Solar”) (NASDAQ: CSIQ), today announced that its majority-owned subsidiary CSI Solar Co., Ltd. (“CSI Solar”) has submitted the application documents for its potential initial public offering (“IPO”) and listing on the Science and Technology Innovation Board (the “STAR” Market) of the Shanghai Stock Exchange. The documents have been received by the Shanghai Stock Exchange.

In July 2020, Canadian Solar announced its plan to publicly list the shares of its CSI Solar subsidiary, formerly mainly the Module and System Solutions and the China Energy business, on China’s stock market. The Company has chosen the STAR Market for the listing as it is intended to support technology and innovative companies in China.

According to CSI Solar’s relevant initial public offering documents, it plans to issue up to 541,058,824 shares, excluding shares issuable upon the exercise of an over-allotment option, which will account for no less than 15% of its total share capital after the IPO. Currently, Canadian Solar owns approximately 80% of CSI Solar’s shares, which includes approximately 5% of shares issued under CSI Solar’s employee stock ownership plan (“ESOP”) that will become effective immediately upon the completion of the IPO. Immediately following the IPO and by giving effect to the ownership transfer of the ESOP shares and the dilution effect from the shares newly issued for the IPO, Canadian Solar expects to hold approximately 64% of CSI Solar’s shares.

The proceeds of the offering, which are subject to the actual size and pricing of the offering, will be used to strengthen CSI Solar and the Company’s market leadership position by investing in capacity expansion across the solar value chain, research and development, and additional working capital for CSI Solar.

The completion of the proposed CSI Solar IPO is subject to the review process by the Shanghai Stock Exchange and the registration process by the China Securities Regulatory Commission. CSI Solar’s IPO prospectus can be publicly accessed on the Shanghai Stock Exchange’s website, available on http://kcb.sse.com.cn/.

Whether the Company can successfully complete the listing of CSI Solar’s shares, the related timeline, actual size and pricing of the offering depend on various factors, including but not limited to, capital market conditions in China and globally, the regulatory environment for the listed securities, the Company’s financial performance and ability to fulfill the listing requirements in China.

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