Solargiga Energy Holdings, a solar panel component maker planning an initial public offering next month, plans to triple its production capacity next year to meet growing mainland demand for renewable energy. A report from BNP Paribas, the global sponsor and bookrunner of the firm's HK$2.5 billion share offering, said Solargiga wants to add 104 machines to produce wafers for photovoltaic cells as part of the planned expansion, boosting annual production to an equivalent 300 megawatts of power. Beijing is encouraging the solar energy industry to help meet soaring appetite for power and reduce environmental pollution stemming from the widespread use of fossil fuels. Solargiga's expansion plan will cost 350 million yuan, of which 310 million yuan will be for equipment and the rest for factory construction. The company currently has a production capacity of 100 MW. Solargiga plans to boost its total solar cell wafer capacity to 88 million pieces a year in 2009 from 16 million at the end of last year. The offering will be the second renewable energy offering in Hong Kong after wind gear equipment manufacturer China High-Speed Transmission, whose shares have risen 150 per cent rise since their trading debut last July. Solargiga hopes to raise up to HK$2.5 billon selling a combined 422 million shares in the company. Of that 60 per cent will be new stock with the remaining old shares sold by pre-offering shareholders. The offering represents 25 per cent of the company's enlarged share capital. The offering will be launched on January 21 with trading expected to start on February 1. Solargiga is likely to report that net profit grew 110 per cent last year to 311.1 million yuan, according to BNP. The National Development and Reform Commission projects 300MW of installed domestic solar energy capacity by 2010 and up to 1,800MW by 2020. Installed capacity in 2005 was 70MW.