Maxeon Solar to finance capacity expansion with share sale

(This article has been updated to include pricing information)

Singapore-based photovoltaic (PV) panels maker Maxeon Solar Technologies Ltd (NASDAQ:MAXN) is looking to raise about USD 157.4 million (EUR 145.5m) from an upsized public offering of ordinary shares to finance an expansion of its production capacity.

The SunPower spin-off announced the pricing of the offering on Wednesday, saying it will offer 5.62 million ordinary shares at USD 28.00 apiece instead of the initially planned 5.1 million units.

In the meantime, Maxeon’s minority shareholder TotalEnergies SE (EPA:TTE) is offering 1.87 million Maxeon shares rather than 1.7 million units, though the Singaporean firm will not receive any proceeds from this sale. The French multi-energy group has also granted the underwriters a 30-day option to buy up to an additional 1.12 million ordinary shares on the same terms and conditions.

The underwritten public offering is expected to close on May 19. Prior to the offering, TotalEnergies holds 24.2% of Maxeon's outstanding ordinary shares and TCL Zhonghuan Renewable Energy Technology Co Ltd (SHE:002129), or TZE SG, owns about 23.7%. The latter has meanwhile agreed to buy USD 42 million worth of Maxeon ordinary shares in a private placement to avoid any material dilution of its current equity position.

Maxeon pointed out it will spend the net proceeds from these transactions to support its plan to add incremental capacity for the manufacture of Maxeon 7 products and for general corporate purposes.

BofA Securities and Morgan Stanley were appointed as joint book-running managers and also act as representatives of the underwriters for the offering.

(USD 1.0 = EUR 0.924)

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