JinkoSolar Stock Jumps 9% After Subsidiary Debuts in Shanghai IPO
Jinko Power raised 2.6 billion yuan in a highly oversubscribed Shanghai listing on Tuesday.
JinkoSolar Holding Co. Ltd. (NYSE: JKS) closed more than 9% higher Tuesday after its subsidiary, Jinko Power Technology, debuted with fanfare in Shanghai IPO.
Listed under "601778" on the main board of the Shanghai Stock Exchange, Jinko Power raised 2.6 billion yuan ($366.2 million). The listing was 461 times oversubscribed and hit the limit of 44% increment on Day One.
Jinko Power develops, builds, finances, owns, and operates solar power plants. Its parent, JinkoSolar, has been listed on the New York Stock Exchange since 2010 and today closed at $17.10 per American depositary share.
JinkoSolar filed its annual report with the U.S. SEC in late April, reporting $4.3 billion in revenues, up 19% from 2018. Of that, the company reported $9 million as "subsidy income." Net income reached $132.8 million, more than double year-over-year, according to the filing.
Jinko Power has not been doing as well. As reported by China Knowledge, the company had revenues of $752.2 million in 2019, down 24% year-over-year, on income of $103.5 million, a 19% decline.
China Securities was the lead underwriter on Jinko Power's IPO in Shanghai.
Earlier this year, JinkoSolar was swept up in a slew of short-seller scandals after Bonitas Research alleged that the company faked some sales, among other things.
JinkoSolar denied the allegations and said the reports "contain numerous errors, unsubstantiated statements, and misleading conclusions and interpretations."