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JinkoSolar IPO: China Solar Manufacturer Makes Its Debut

JinkoSolar Holding Co. (s JKS), a solar manufacturer based in China, priced the shares for its initial public offering and began trading Friday morning at $11 apiece — the low end of the range anticipated for Jinko’s IPO. In morning trading Jinko’s stock hit a high of $11.23 early on before diving as low as $10.80.

Founded in 2006, Jinko makes silicon wafers, solar cells and modules. The company previously said in a filing with financial regulators that it expected a range of $11-13 for each of the 5.84 million American depositary shares (ADS) planned for offering (each ADS represents four common shares of the company).

This marks Jinko’s second run at an IPO. The company filed for an initial public offering back in January, with plans to sell 10.6 million ADS at $6-8 apiece. But amid tight credit markets, a solar glut and a generally down economy, JinkoSolar put the IPO on hold in February, citing poor market conditions.

There’s a key line in Jinko’s regulatory filings that sets it apart from many of the greentech firms that have come into the IPO pipeline for 2010: “We have achieved sustained and profitable growth since our inception in June 2006.”

A history of profits contrasts with the financials of some of the other greentech firms aiming for IPOs in 2010like electric car maker Teslabicycle tech developer Fallbrook Technologies, and biocatalyst developer Codexis.

That said, 2009 was a tough year for JinkoSolar, as it was for much of the solar industry due to what Jinko describes in a regulatory filing as “the global recession and credit market contraction.” The company saw its revenue drop by more than 25 percent from 2008, to $229.7 million. Net income fell to $12.5 million in the 2009 calendar year, from more than $32 million in 2008.

Based in China’s Jianxi Province and Zhejiang Province, Jinko plans to use the bulk of proceeds from today’s offering — some $45 million — to expand its production capacity, buying new equipment and expanding or constructing manufacturing facilities. The firm aims to invest about $5 million in research and development to cut manufacturing costs, boost conversion efficiency and generally improve product quality. According to a regulatory filing, the remainder will go toward working capital.

Images courtesy of JinkoSolar

More research on greentech financing see GigaOM Pro:

Cleantech Financing Trends: 2010 and Beyond