Principal Solar to Raise US$27 Million from IPO

US-based Principal Solar Inc.  is planning to raise US$27 million from an initial public offering of its shares.

Principal said it plans to offer 2.5 million shares which will be priced between US$9 to US$11 each. It plans to list its shares on the Nasdaq Capital Market. Its underwriter is Northland Capital Management, which has an option to buy an additional 375,000 shares.

Principal did not say what it intends to use the proceeds for. In March, it said that it will invest US$154 million to develop a 72.9-megawatt solar farm in North Carolina. The project will be located in southern Fayetteville and has secured a 10-year power purchase agreement with  Duke Energy. Principal Solar acquired the right to develop the project from Innovative Solar Systems.  The acquisition of the project is expected to close by August 30, with construction to be completed in early 2016.

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