JinkoSolar, a solar module manufacturer, announced that its operating subsidiary, Jinko Solar Company Limited (Jiangxi Jinko), has raised RMB 3.1 billion (~$458 million) through equity financing.

As per the company’s statement, the equity financing was to help Jiangxi Jinko qualify for a listing on the Shanghai Stock Exchange’s sci-tech innovation board (STAR Market) and raise the necessary capital for its expansion plans.

Last month, JinkoSolar’s board of directors had approved a strategic plan to access China’s capital market through its principal operating subsidiary Jiangxi Jinko.

Speaking on the development, Kanping Chen, CEO of JinkoSolar, said, “The successful completion of this fundraising marks an important milestone for us and takes us one step closer to the planned listing of Jiangxi Jinko in China. It also provides us with the capital to expand our capacity and further strengthen our leading position in research and development. We are thankful for the strong support from our new investors and are committed to creating sustainable value for all our shareholders.”

The recently released report by Mercom Capital Group on Q3 2020 solar funding and M&A, public market financing into the solar sector globally came to $1.3 billion in four deals in Q3 2020, 75% higher compared to Q2 2020.

It is expected that after the completion of this transaction, JinkoSolar will prepare actively for the listing of Jiangxi Solar on the STAR Market, in line with the relevant laws and regulations in China.

After the deal’s closing, the Chinese third-party investors, including China Industrial Bank Group, CIIT Asset Management Company, YunShang Fund, Huaho Capital, and China Capital Management Company, China Securities Investment Company, along with JinkoSolar founders will own approximately 26.7% equity share in the subsidiary.

Earlier, JinkoSolar announced the unaudited financial results for the second quarter (Q2) 2020. According to the financial statement, the company’s total revenue in Q2 2020 was $1.2 billion (~₹88.49 billion), a decrease of 0.4% compared to $1.24 billion (~₹91.4 billion) in Q1 2020.

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