SunPower Prices IPO
Staff Reporter -- EDN, June 1, 2006
Cypress Semiconductor Corp.’s solar cell and solar panel subsidiary SunPower Corp. today announced the pricing of a public offering of 7 million shares of its class A common stock at $29.50 per share, hoping to raise $206.5 million.
San Jose-based SunPower says it will use the net proceeds of the offering for general corporate purposes, including working capital and capital expenditures, and potentially for further expansion of its Philippines manufacturing facilities.
In addition, under terms of the IPO, SunPower may use proceeds of the offering for the acquisition of, or investment in, complementary businesses, technologies or other assets, and to invest in joint ventures.
SunPower also says it may take any of the previous actions to further its strategy to broaden its supply-chain opportunities, increase the efficiency of the downstream channel and reduce the cost of its products delivered to end customers.
The company says it may also use a portion of the proceeds for prepayments to vendors of polysilicon, ingots and wafers.
Finally, SunPower has granted the underwriters an option to purchase up to an additional 1.05 million shares ($31 million in potential proceeds) to cover over allotments, if any, which the underwriters may exercise within 30 days of the date of the final prospectus for the offering.
