Trina Solar to List in China Again

Trina Solar has been a stalwart of the global solar industry, having successfully navigated the violent ups and downs of the industry as it had made rapid progress in decreasing costs and improving the technology. However, it has not been kind to the publicly listed stocks as stiff competition and rapidly decreasing prices have not allowed solar companies to make decent margins and revenues.

Big changes in business models and large investments have also made solar companies lose money and investors have been unwilling to pay a decent price multiple for the stocks given the massive volatility. Investors would rather prefer a Proctor and Gamble or a Coke stock with their mostly predictable earnings and growth. Chinese stocks have been hugely affected in the past with most of these solar stocks getting a very low valuation. This has made a number of Chinese solar companies delist from the USA stock exchanges. Some others went bankrupt so they got automatically delisted.

Also, read the list of 6 Best Indian Solar Stocks to Buy in 2018

Trina Solar which is one of the top five global suppliers of solar panels and a large solar farm developer went private in 2017 and now is looking to again list on the high tech arm of the Shanghai stock exchange. The company plans to raise more than $400 million to fund its working capital and solar farm expansion capital needs. There are already a number of Chinese solar companies such as Longi, Risen and others which are listed and have got a decent valuation. Some other companies in the solar space such as GCL Poly and Canadian Solar are also now looking to delist from foreign stock exchanges and go back to their home country to list their shares. Jinko Solar is the only large Chinese solar company which is listed on the USA stock exchange and which does not plan to delist soon. All others have now gone from the USA stock exchange leaving investors with very less number of options to put money into the solar industry.

Also, read about the 12 Biggest and Best Solar Panel Companies In The World