Shares in ‘Solar Module Super League’ (SMSL) member JinkoSolar’s operating subsidiary surged on the company’s Shanghai stock market debut, closing at more than double their listing price.
The company’s Jiangxi Jinko subsidiary listed on Shanghai’s Sci-Tech Innovation board, or STAR Market, today, with Jinko issuing 2 billion shares in the subsidiary at an opening price of RMB5 (US$0.79) each.
The listing therefore raised gross proceeds of around RMB10 billion (US$1.58 billion), which the manufacturer is set to invest in manufacturing and R&D facilities based in Haining, Zhejiang Province, China.
But the share price surged during Jinko’s opening day of trading, rising to a high of RMB11.95 (US$1.89) before closing at RMB10.55 (US$1.66), more than double Jinko’s opening price.
That closing price gives the subsidiary a market capitalisation, or value, of US$16.69 billion. By means of comparison, the market cap of JinkoSolar Holding, the entity listed on the New York Stock Exchange, currently stands at just under US$2 billion.
Xiande Li, CEO at JinkoSolar, paid testament to the work of the company’s team in reaching the milestone “so efficiently”.
“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,” he said.