Maxeon Photo voltaic Applied sciences, the producer of the Maxeon and SunPower photo voltaic module manufacturers, raised capital from a $157.4 million underwriting of shares and a separate $42 million non-public placement with TCL Zhonghuan.
From pv journal USA
Maxeon Photo voltaic Applied sciences has priced a public providing of shares to boost $157.4 million in fairness proceeds. It stated the funds might be used for Maxeon 7 module manufacturing and basic company functions.
Maxeon offered 7.48 million widespread shares of inventory, together with 1.87 million shares to historic investor TotalEnergies, at a value of $28 per share. By closing, the corporate expects to obtain greater than $157 million in gross income. The provide is up 10% from an preliminary announcement made by Maxeon to promote 6.8 widespread shares, in response to an organization assertion. The add-on public providing is predicted to shut on Might 19.
BofA Securities and Morgan Stanley are appearing as joint book-running managers for Maxeon’s providing. Raymond James and Roth Capital Companions are co-managers for the providing. In a further non-public placement transaction, TCL Zhonghuan Renewable Vitality, a present 23.7% shareholder in Maxeon, will purchase 1.5 million shares of Maxeon inventory for about $42 million.
TCL Zhonghuan is a Chinese language semiconductor producer primarily engaged within the photo voltaic market. In July 2020, Tianjin Zhonghuan Semiconductor was acquired by TCL after the patron electronics producer received an public sale to purchase shares of its mother or father, the state-owned Zhonghuan Digital Data Group.
Maxeon is utilizing the fairness increase to fund a 500 MW enlargement of its cell manufacturing capability for the Maxeon 7 interdigitated again contact (IBC) panel, which is predicted to extend the manufacturing capability of next-generation cells. panel of about 50%, the corporate stated. The Maxeon 7 IBC panels are anticipated to be essentially the most environment friendly photo voltaic panels on the planet at roughly 24% module effectivity.
IBC’s manufacturing enlargement will make the most of a beforehand closed warehouse within the Philippines with module meeting going down at different Maxeon amenities. The Philippines facility might be designated as a “Fab5” facility and might be positioned close to Maxeon’s present Fab4 website, which at present hosts the Maxeon 7 pilot line.
Maxeon stated manufacturing on the Fab5 website will enhance within the second half of 2024. The corporate stated the brand new quantity produced by Fab5 might be offered in distributed era (DG) markets, together with the enlargement of provide quantity in a brand new US residential channel market. The extra new enlargement capability at Fab5 will enable extra shipments to the European market and steadiness the combo of Maxeon and Efficiency line gross sales.
Whole capital expenditure (capex) for Maxeon’s IBC enlargement is $200 million, of which about $50 million is for website preparation and long-term lead objects included in preliminary steering in 2023. Contains of $157.4 million and $42 million in add-on and personal placement revenues, the corporate’s 2023 capex funds stays at $150 million to $170 million, of which $100 million is said to the Fab5 ramp.
Home content material information
In US Securities and Change Fee (SEC) filings, Maxeon stated the corporate’s administration is reviewing the Might 12 steering from the Inside Income Service associated to home content material bonus incentives beneath the US Inflation Discount Act.
For taxpayers utilizing the Part 48 Funding Tax Credit score (ITC), eligibility for the home content material bonus will increase the credit score by 10%, which most often ranges from 30% to 40% of the price of a qualifying photo voltaic property. . By way of energy output, the usage of manufacturing tax credit score (PTC) will enhance by 10% as effectively because of home content material eligibility.
“The IRS steering helps our introduced plans to deploy a multi-GW cell and module manufacturing unit within the US to fabricate photo voltaic merchandise for the DG and utility-scale plant markets in electrical energy,” stated Maxeon. “We’re at present revising this steering, which supplies tips on how the photo voltaic merchandise we manufacture may also help our clients qualify for the ITC and PTC indoor bonus and prescribes the necessities for particular document retaining and certification.”
Maxeon was spun off from SunPower in August 2020, when the 2 turned separate entities. TotalEnergies has a small curiosity in Maxeon.
The corporate’s Efficiency line of photo voltaic modules makes use of Maxeon’s shingled cell expertise, initially developed by SunPower. The expertise is protected by 83 granted patents. The 425 W modules use bifacial mono-PERC photo voltaic cells made on large-format eight-inch G12 wafers, and have an effectivity of 20.6%, in response to Maxeon.
Maxeon is predicated in Singapore however lists shares on the Nasdaq Capital Markets change, the place it at present trades at $28.66 per share immediately with a $1.3 billion market capitalization. The corporate has 5,344 workers worldwide, based mostly primarily in Mexico (39%), Malaysia (33%) and the Philippines (20%), in response to its annual monetary assertion.
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