JinkoSolar unit plans USD-1.3bn share sale for capacity expansion

The majority-owned principal operating subsidiary of Chinese solar module maker JinkoSolar Holding Co Ltd (NYSE:JKS) intends to launch a private share sale in a bid to raise up to CNY 9.7 billion (USD 1.34bn/EUR 1.22bn) to support a manufacturing expansion plan in the province of Shanxi.

Jinko Solar Co Ltd (SHA:688223), also known as Jiangxi Jinko, will offer ordinary shares to institutional investors, the parent company said on Monday.

The Chinese company will allocate the proceeds to support the construction and development of certain solar cell, module production and capacities and for working capital or loan repayments.

The placement needs to be approved by Jiangxi Jinko's shareholders and the Shanghai Stock Exchange. Authorisation will also be needed from the China Securities Regulatory Commission.

JinkoSolar currently owns an equity interest of about 58.62% in Jiangxi Jinko. The unit completed its initial public offering (IPO) in Shanghai at the beginning of last year, raising gross proceeds of CNY 10 billion.

(CNY 1.0 = USD 0.139/EUR 0.126)

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