JinkoSolar Holding Co Ltd announced that its majority-owned subsidiary, Jiangxi Jinko, plans to issue up to CNY 4.5 billion (USD 632.1 million/EUR 584.6 million) in A shares, which will subsequently be listed in Germany. The company, known for its solar module manufacturing, stated that the offering will involve the issuance of up to 1 billion A shares in the form of Global Depositary Receipts (GDRs), with each A share having a par value of CNY 1 and each GDR representing 10 shares.
The proposed size of the placement will be subject to market conditions and may be adjusted by Jiangxi Jinko's board of directors. The issuance is pending approval from shareholders and regulators in both China and Germany. The GDRs will represent up to 10% of Jiangxi Jinko's total share capital prior to the transaction, and the company intends to list the GDRs on the Frankfurt Stock Exchange.
Funds generated from this offering will be allocated to the construction of a 1-GW solar module factory in the United States and the Phase II project for a 14-GW vertically integrated manufacturing complex in Shanxi, North China. Additionally, some proceeds will be used to repay Jiangxi Jinko's existing debt.
Currently, JinkoSolar holds an equity stake of approximately 58.59% in Jiangxi Jinko, which successfully completed its initial public offering (IPO) in Shanghai in early 2022, raising gross proceeds of CNY 10 billion. Following the GDR sale, JinkoSolar's ownership in Jiangxi Jinko will decrease to around 53.26%.
This announcement follows a similar move by Chinese renewable energy equipment supplier Sungrow Power Supply Co Ltd, which also revealed plans to list its stock on the Frankfurt Stock Exchange.
