Follow-ons from Suntech Power and Sino-Forest

Suntech raises $250 million, but the share price tumbles close to 15% during the offering, resulting in a 21% discount to the pre-deal close. Meanwhile, Sino-Forest raises $290 million from an upsized fixed-price deal.

Suntech Power Holdings late last week became the first US-listed Asian issuer to sell new shares through a placement this year, following the example of a series of US companies over the past month. The solar cell and module manufacturer raised $250 million, which it will use partly for repurchases and redemptions of existing securities, including a put obligation on its outstanding convertible bonds due 2012, and partly for capital expenditure and working capital.

While the offering found enough...

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