- Jiangxi Jinko has completed its STAR Market IPO process and is now trading since January 26, 2022
- It raised RMB 10 billion through the Chinese IPO with having priced each share at RMB 5.00
- After the IPO, its parent company JinkoSolar now owns 58.62% stake in the subsidiary
The much-awaited Chinese public listing of tier I solar cell and module manufacturer JinkoSolar Holding’s principal operating subsidiary is now complete as it raised close to RMB 10 billion ($1.58 billion) through its initial public offering (IPO).
Just for perspective, Chinese polysilicon maker Daqo New Energy’s principal subsidiary raised RMB 6.45 billion through the STAR Market in July 2021 (see Daqo New Energy’s China IPO Raises RMB 6.45 Billion).
The subsidiary Jiangxi Jinko or Jinko Solar Co. Ltd. has started trading on Shanghai Stock Exchange’s Sci-Tech Innovation Board, dubbed STAR Market on January 26, 2022.
It sold 2 billion shares, representing close to 20% of the total 10 billion outstanding after the IPO, pricing each at RMB 5.00 ($0.79) per share. However, the Chinese company saw its share price going up 111% to RMB 10.55 ($1.67) on the 1st day of trading. The parent company JinkoSolar now owns close to 58.62% stake in Jiangxi Jinko.
Bloomberg notes this takes the company’s market value to about $17.5 billion, and compares to its US listed entity’s market cap of $1.9 billion.
“As we continue to scale and grow, having access to capital will boost our competitiveness as we leverage our network and resources accumulated over the years to strengthen our leading position in the global PV industry,” said JinkoSolar’s Chairman of the Board of Directors and CEO Xiande Li.
JinkoSolar had earlier said it plans to use the proceeds for construction of 5 GW high efficiency solar cells and a 5 GW high efficiency modules line along with using it for additional working capital (see JinkoSolar & Canadian Solar STAR Listing Plans Update).