Siliken Plans Share Sale as Early as 2011 as Solar Panel Exports Escalate

Siliken SA, a Spanish solar panel maker, is planning an initial share offering as early as next year, Chairman Carlos Navarro said.

Siliken, based in Valencia, aims to raise from 40 million euros ($53 million) to 80 million euros to finance its international expansion and will look to sell at least 20 percent of the company to investors, most likely on the Madrid stock exchange, Navarro said in an interview.

“We want to be ready as soon as a window opens,” Navarro said yesterday. “We expect that in 2012 it will be the case, but if in 2011 there is a window, we expect to be ready.” Navarro is shifting Siliken’s focus to Germany, Italy, France and the U.S. because demand for photovoltaic panels in Spain has crashed after the government cut the subsidies for solar plants. Siliken’s sales slumped by 61 percent to 150 million euros last year. Plant developers T-Solar Global SA and Renovalia SA postponed IPOs this year after government officials said they may extend the cuts to cover existing plants. Siliken already exceeded its 2009 sales this year as exports surged. Revenue may double this year from the preceding 12 months, Navarro said.

The Spanish government has slashed support for photovoltaic plants after sparking a 16 billion-euro investment boom in 2008, which made Spain the biggest market for photovoltaic panels. Demand for panels slumped in 2009 after subsidies for new plants were cut by a quarter. The government announced a further 45 percent cut for the biggest installations on July 31. Siliken expects to increase its sales by at least 30 percent a year from 2011, Navarro said. “A lot of new markets are becoming cost effective without incentives,” Navarro said.