Confused about the Announced First Solar 8.5M Share Offering ? (FSLR)

First Solar announced today June 11th, 2013 a 8.5M offering through a preliminary prospectus and S-3ASR with a S-3 to follow. There is a (30-day) 1.275M over allotment option provided to underwriters.

“Assuming a public offering price of $56.40 per share” 

Underwriters: “J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are acting as representatives of the underwriters.”

J.P. Morgan Securities LLC   
Morgan Stanley & Co. LLC   
Merrill Lynch, Pierce, Fenner & Smith   
Incorporated   
Citigroup Global Markets Inc.   
Credit Suisse Securities (USA) LLC   
HSBC Securities (USA) Inc.   
Credit Agricole Securities (USA) Inc.   
Goldman, Sachs & Co.

Source: Preliminary Prospectus 

The offering equates to roughly 10-12% dilution on current outstanding shares and shareholders.

Assumed net proceeds from offering is 457.5M (526.6M with over allotment)

One dollar increase or decrease through the offering price (56.40) will approximately have an effect of approximately 8.2M on net proceeds. 

Estimated expenses from the offering are 2.7M

“We intend to use the proceeds from the sale of our common stock offered hereby for general corporate purposes, which may include acquisitions of under development photovoltaic solar power system projects, investments in photovoltaic solar power system projects that will be jointly developed with strategic partners and capital expenditures or strategic investments to develop certain business units and expand in new geographies.”

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