JinkoSolar unit to raise USD 456m with eyes locked on future STAR Market listing

Chinese solar module maker JinkoSolar Holding Co Ltd (NYSE:JKS) plans to list its principal operating subsidiary on the Shanghai Stock Exchange's Sci-Tech innovation board, also known as the STAR Market, in the next three years.

The company said on Monday that its board of directors has approved the move involving Jinko Solar Co Ltd, or Jiangxi Jinko. The listing will take place after certain intra-group restructuring processes and will depend on the capital market conditions in China and globally, among other factors, the announcement notes.

Meanwhile, third-party investors, JinkoSolar's founders, Xiande Li, Kangping Chen and Xianhua Li, and senior management personnel have agreed to invest an aggregate of CNY 3.1 billion (USD 456m/EUR 389m) into Jiangxi Jinko for an equity interest of 26.7%. This transaction should make the unit eligible for a STAR Market listing and will provide additional capital to support its continuous expansion. It is based on a pre-money valuation of Jiangxi Jinko's equity value of CNY 8.5 billion.

The equity fundraising is seen to close by the end of next month.

"Listing Jiangxi Jinko on the STAR Market will enable it to access a new source of growth capital, which we believe will ultimately strengthen our leading position in the solar module industry and support our continuous growth over the long run,” said Kangping Chen, CEO of JinkoSolar.

(CNY 1.0 = USD 0.147/EUR 0.125)

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