Integrated solar company Renewable Energy Corp. (REC.OS) Tuesday said it has raised 4.52 billion Norwegian kroner ($697 million) before transaction costs in a significantly oversubscribed share issue aimed at bolstering its financial flexibility.

The company offered 170.45 million new shares at NOK26.50 for which it received subscriptions for around 269 million shares, making it oversubscribed by almost 60%.

REC has been hit in recent months by weak demand for solar products, which has reduced prices for solar modules, in turn affecting supply and demand balances and prices further up its value chain. It has already reduced production and made short-term layoffs in its wafer and solar units, but has said it remains upbeat about the longer-term prospects in the poly-voltaic industry.

"Allocation of shares to the subscribers is expected to be resolved by the board of directors of REC on or about July 17," REC said in a statement, with the final result due to be published through Oslo Boers information system the same day, it added. Payment for the shares is due July 21.

REC said the share capital will be registered on around July 23 and new shares will be delivered to subscribers on or about July 24.

After the rights issue, the company's share capital will total 664.77 million shares.

DnB NOR Markets acted as global coordinator and joint bookrunner, and ABN Amro, BNP Paribas and Nordea Markets were joint lead managers and joint bookrunners.

At 0701 GMT, Rec traded down NOK1.08, or 2.4%, at NOK43.50, while Oslo's OSEBX index traded up 0.4%.

Company Web site: www.recgroup.com

-By Elizabeth Adams, Dow Jones Newswires; +44 (0) 7789 070 028; elizabeth.adams@dowjones.com