JinkoSolar has unveiled plans to list its principal operating subsidiary on the Frankfurt Stock Exchange
It aims to raise not more than RMB 4.5 billion, representing up to 10% of the total share capital
Proceeds will be deployed for the construction of its manufacturing plants in the US and China
China-headquartered global solar PV manufacturer JinkoSolar Holding plans to get its wholly-owned principal operating subsidiary Jinko Solar or Jiangxi Jinko get listed on the Frankfurt Stock Exchange in Germany.
It will issue an aggregate of up to over 1 billion A shares priced at RMB 1.00 par value/share in the form of Global Depositary Receipts (GDR). This instrument enables a company to raise capital from international investors by listing on local stock exchanges.
The gross proceeds it targets from this offering are expected to be not more than RMB 4.5 billion ($631.65 million). These will be used for the construction and development of its 1 GW high-efficiency module factory in the US for which it recently secured tax credit under the US Inflation Reduction Act (see North America Solar PV News Snippets: Boosting US’ Vertical Solar PV Manufacturing At RE+ & More).
Additionally, it will also use the capital to construct and develop its Shanxi phase II 14 GW integrated production base. This site will produce monocrystalline silicon ingots, wafers, high-efficiency solar cells and modules (see Massive PV Manufacturing Complex In China).
The remaining capital will be used as working capital or to repay the bank loans of Jiangxi Jinko.
JinkoSolar said the GDRs will represent not more than 10% of the total share capital of its subsidiary prior to this offering. Currently, the manufacturer owns close to 58.59% of equity interest in the subsidiary. Once the GDR offering is issued, its ownership will come down to around 53.26%.
The management said the issuance will effectively increase the production capacity of its n-type components, thus consolidating its leading position in the n-type market. Its current n-type mass production capacity for solar cells exceeds 75 GW. In H1 2024, n-type components accounted for over 80% of its total shipments.
JinkoSolar further explained that this issuance is important for the company to urgently enhance its capital to seize the development opportunities of the industry, maintain its competitiveness and improve profitability.
The funds raised from this issuance will effectively alleviate the financial pressure brought about by the expansion of the company's business scale, further optimize the company's capital structure and consolidate sustainable development in R&D capabilities, added the manufacturer.
JinkoSolar’s GDR plans for Germany follow similar plans of its compatriot and a leading solar inverter and energy storage systems supplier Sungrow (see Sungrow To Raise RMB 4.88 Billion With Frankfurt Stock Exchange Listing).
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