BANGALORE - Shares of LDK Solar tumbled for a second day after the Chinese solar wafer maker cut the size of its offering of American Depositary Shares (ADS) and priced it at an 11 percent discount to Thursday's close.
The shares were down nearly 13 percent to $6.84 late Friday morning on the New York Stock Exchange, after dropping 14 percent on Thursday.
The company reduced the size of the offering to 16.5 million ADSs from 18.9 million, and the offer was priced at $7.00 each, compared with Thursday's close of $7.84.
LDK said on Thursday it would issue the ADSs as it faced a cash crunch that threatened its ability to survive.
In a regulatory filing with the U.S. Securities and Exchange Commission on Friday, LDK said it expects net proceeds of about $108.1 million from the offering, of which $90 million will be used to repay short-term debt at annual interest rates between 5 percent and 6 percent.
The remaining proceeds will be used to fund a polysilicon production plant and expand its solar module business, the company said.
LDK said it granted underwriters an over-allotment option of 2.4 million ADSs.
LDK said Morgan Stanley and Citi are acting as joint bookrunners for the offering.
(Reporting by Antonita Madonna Devotta and Arundhati Ramanathan in Bangalore; Editing by Jarshad Kakkrakandy)