Solar Giant Jinko Lists in Shanghai at Near 800% Premium to U.S.
Solar Giant Jinko Opens Shanghai Trading at 800% Premium to U.S.
(Bloomberg) -- Jinko Solar Co. more than doubled on its first day of trading in Shanghai, giving it a massive premium to its parent’s listing in the U.S.
Jinko, the world’s second-biggest solar module manufacturer, rose to as much as 11.95 yuan a share ($1.89) on Wednesday, before ending 111% higher than its offer price and implying a market cap of about $16.7 billion. That compares to a $1.9 billion market cap for the U.S.-listed depository receipts of JinkoSolar Holding Co.
The gain for the day was the biggest increase in a debut since October 2020 for a company listing in mainland China after raising over $1 billion.
Jinko is the latest Chinese solar firm to see a valuation bump in its home country. Chinese investors may be more optimistic about the future of the solar sector, given the country is the world’s leader in both producing and installing panels. Meanwhile, overseas investors may be more cautious because of political and trade disputes involving China and the U.S., and more disclosure requirements stateside that could lead to delistings.
Jinko Solar “is a high-quality company in this area,” said Wang Chen, a Shanghai-based partner of XuFunds Investment Management Co. “Some investors may feel it worth investing after compared the earnings expectation with its valuation. The policy of the United States is indeed an uncertainty, but it needs to be wait-and-see any changes in the future.”
Among other companies in the sector, Shanghai-listed Xinjiang Daqo New Energy Co. has a market cap of $15 billion, compared to a $2.7 billion valuation for New York-listed Daqo New Energy Corp. When Trina Solar Co. delisted from the New York Stock Exchange in 2017, it was valued at $1.07 billion. It was worth more than $5 billion after its first day of trading in Shanghai last year, and is now valued at more than $23 billion.
Canadian Solar Inc. may be the next solar giant to test the mainland market after it received approval last month to list in Shanghai.
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