JinkoSolar plans to issue 3.5 million American Depositary Shares (ADS) that the company said in an SEC filing could net it significant new capital to fund capacity expansion and other activities.
The manufacturer is following a number of other PV companies that have looked to access the markets to raise capital in the last week, but is the first to explicity mention using the proceeds to expand manufacturing capacity.
Yingli Green, SunEdison, Canadian Solar, ReneSola, Emcore Corporation and GT Advanced Technologies all announced plans to issue shares last week, as a consequence of rising share prices and ongoing constraints in accessing loans from banks.
JinkoSolar’s ADS offer comes at a time when such shares have been trading upwards for the last six months and were valued at over US$19.0 per share in the last month.
The prospectus for the share offering also included a provision for an extra 525,000 ADSs to be offered by underwriters, increasing the net value of the offering. JinkoSolar has yet to set the strike price for the offering.
Although JinkoSolar directly mentioned using proceeds from the share offer to expand capacity, it covered its tracks by noting that the capital would also be used for the “development of solar power projects” and the usual commentary of being used for “general corporate purposes”.
Credit Suisse Securities, J.P. Morgan Securities and Jefferies will act as joint book-runners for the offering.