The latest: JinkoSolar Holding Co. Ltd. (JKS.US), one of China’s largest solar module manufacturers, announced Tuesday that its main operating subsidiary, JinkoSolar Co. Ltd., has completed the registration process for an IPO on Shanghai’s Nasdaq-style STAR Market, with plans to raise 6 billion yuan ($940 million).
Looking up: JinkoSolar first announced its STAR Market IPO plan in September 2020, and it was accepted by the Shanghai Stock Exchange in June and approved by the China Securities Regulatory Commission (CSRC) in late September this year. The total process took a relatively short time of just over a year.
Take Note: JinkoSolar’s China-listed shares could be more prone to manipulation due to laxer regulatory oversight compared with the U.S. The company may also need time to adapt to big differences in trading and disclosure rules between the U.S. and China, as well as to China’s changing regulatory environment.
Digging Deeper: JinkoSolar’s listing follows similar plans by Shaanxi Lighte Optoelectronics Material and Canadian Solar (CSIQ.US), which have also received CSRC approval for STAR Market IPOs. Since May 2021, 15 photovoltaic enterprises have listed or initiated IPO procedures on the STAR Market, according to industry data. Establishment of the group on the STAR Market can help companies in different segments of China’s photovoltaic industry to raise capital locally to support their development.
Market Reaction: JinkoSolar’s New York-listed shares rose 4.5% on Tuesday to close at $44.1. But the stock is still 42.4% off its high of $76.53 from earlier this year.
Translation by Jony Ho
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