Chinese solar firm eyes $250 mln Nasdaq IPO

By Judy Hua

HONG KONG (Reuters) - Chinese solar equipment maker Qiangsheng Photovoltaic Technology plans to raise about $250 million in a Nasdaq stock market listing to fund its breakneck pace of expansion, the latest debut there by a Chinese renewable energy firm.

The fledgling firm, one of the first to make cells and panels using emerging thin-film technology, aims to boost capacity to 500 megawatts by 2010, even though its first production line will come onstream only this month with a capacity of 25 megawatts, Chairman Sha Xiaolin told Reuters in a telephone interview.

Qiangsheng, one of a coterie of private solar technology firms seeking cash as they try to capitalize on the central government's campaign to expand renewable energy use, wants to tap markets at a time of global turmoil, as investor fears of a U.S. recession wallop bourses.

Based in Nantong city in the country's eastern province of Jiangsu, the Hong Kong-invested company is in talks with U.S. and European investment banks, including Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz), on underwriting its listing, Sha added without elaborating.

"A listing is the only way to fulfill our expansion ambition," Sha said on Tuesday. "We hope to list by the end of this year, or the first quarter of 2009 at the latest."

China, the world's largest energy market after the United States, aims to generate a tenth of its power from renewables by 2010. The government is encouraging Chinese firms to pursue major share floats in hopes of riding strong investor demand for alternative energy plays.

Investors, betting that global demand for renewable energy sources will take off as governments fight pollution and seek alternatives to record oil prices, pushed up solar energy stocks last year, including Chinese firms Suntech Power Holdings Co Ltd (STP.N: Quote, Profile, Research, Stock Buzz) and Yingli Green Energy Holding Co Ltd (YGE.N: Quote, Profile, Research, Stock Buzz).

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