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 lift $157.4 million in fairness proceeds. It stated the funds will likely be used for Maxeon 7 module manufacturing and common company functions.
Maxeon offered 7.48 million frequent 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 frequent shares, in line with an organization assertion. The add-on public providing is anticipated to shut on Could 19.
BofA Securities and Morgan Stanley are performing 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 buyer electronics producer received an public sale to purchase shares of its father or mother, the state-owned Zhonghuan Digital Info Group.
Maxeon used the fairness increase to fund a 500 MW capability enlargement of its cell manufacturing capability for the Maxeon 7 interdigitated again contact (IBC) panel, which is anticipated to extend manufacturing capability for next-generation cells. panel of about 50%, the corporate stated. The Maxeon 7 IBC panels are anticipated to be probably 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 services. The Philippines facility will likely be designated as a “Fab5” facility and will likely be situated close to Maxeon’s current Fab4 website, which presently hosts the Maxeon 7 pilot line.
Maxeon stated manufacturing on the Fab5 website will ramp up within the second half of 2024. The corporate stated the brand new quantity produced by Fab5 will likely be offered in distributed technology (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 permit extra shipments to the European market and steadiness the combination of Maxeon and Efficiency line gross sales.
Complete 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 finances stays at $150 million to $170 million, of which $100 million is expounded to the Fab5 ramp.
Home content material information
In US Securities and Alternate Fee (SEC) filings, Maxeon stated the corporate’s administration is reviewing the Could 12 steering from the Inside Income Service associated to home content material bonus incentives underneath 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 typically ranges from 30% to 40% of the price of a qualifying photo voltaic property. . By energy output, the usage of manufacturing tax credit score (PTC) will improve by 10% as properly because of home content material eligibility.
“The IRS steering helps our introduced plans to deploy a multi-GW cell and module manufacturing facility within the US to fabricate photo voltaic merchandise for the DG and utility-scale plant markets in electrical energy,” stated Maxeon. “We’re presently revising this steering, which gives pointers on how the photo voltaic merchandise we manufacture may help our clients qualify for the ITC and PTC indoor bonus and prescribes the necessities for particular file conserving 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 line with Maxeon.
Maxeon is predicated in Singapore however lists shares on the Nasdaq Capital Markets trade, the place it presently trades at $28.66 per share as we speak with a $1.3 billion market capitalization. The corporate has 5,344 workers worldwide, primarily based primarily in Mexico (39%), Malaysia (33%) and the Philippines (20%), in line with its annual monetary assertion.
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