Canadian Solar to sell 3.5 million shares in US

The China-based company also plans to grant its underwriters, Deutsche Bank Securities Inc. and Piper Jaffray & Co., an option to purchase up to 525,000 additional common shares within 30 days of the offering.

Canadian Solar, which designs and manufactures products that convert sunlight into electricity, plans to use the proceeds from the offering for working capital, general corporate purposes and potential future acquisitions.

The company's shares soared $5.99, or 18 percent, to $38.39 Monday after the company raises its revenue outlook for the second quarter. Shares declined $2.39, or 6.2 percent, to $36 in after-hours trading.