On its first day of trading in Shanghai, Jinko Solar Co., Ltd. (SSE:688223.SS) more than doubled, providing it with a significant premium over its parent’s IPO in the United States.
Jinko IPO on the Shanghai Stock Exchange
On Wednesday, Jinko, the world’s second-largest solar module manufacturer, soared to as high as 11.95 Yuan a share ($1.89) before closing 111 percent higher than its offer price, implying a market worth of almost $16.7 billion. That compares to a $1.9 billion market capitalisation for the U.S. listed depository receipts of JinkoSolar Holding Co.
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Jinko is currently trading in the middle of its 52-week range. This is in line with the S&P 500 Index, which is also trading in the middle of its range. In addition, Jinko has an average volume of 1203290. This is a good sign as it is always nice to have a liquid stock.
After raising more than $1 billion in an IPO, Jinko set a new record. The gain for the day was the most for a firm listed in mainland China since October 2020.
Jinko is the latest Chinese solar company to see its stock price rise in the country. Given that China is the world leader in both manufacturing and installing solar panels, Chinese investors may be more enthusiastic about the sector’s future.
However, political and trade tensions between China and the United States, as well as increased disclosure requirements in the United States, may induce de-listings.
How is Jinko standing out amongst its new competitors?
Among other companies in the sector, Shanghai-listed Xinjiang Daqo New Energy Co. has a market capitalisation 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.
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