JinkoSolar prices US IPO at low end of range

JinkoSolar Holding on Friday morning Hong Kong time managed to price its US initial public offering at the bottom of its indicated range despite the continuing volatility in global equity markets amid a new round of concerns over the debt situation in Europe.

The deal was small at just $64.2 million, which posed another challenge in an environment in which investors are concerned about liquidity, but a cheap valuation relative to its larger comps enabled the firm to win enough investors over to complete the transaction. Having priced within the original range -- contrary to many other issuers in recent weeks that have reduced their ranges before getting their US IPOs out the door -- JinkoSolar then held its ground in the secondary market.

The Chinese integrated solar power play, which covers the entire value chain from the recovery of silicon materials, through the production of wafers, to solar cells and modules, closed its first trading session 1 cent higher at $11.01 after trading in a range between $10.80 and $11.40 during the session. The Dow Jones index fell 1.5%.

Key to the success of the transaction, sources said, was the fact that Credit Suisse, as the sole bookrunner, was able to get the support from a handful of long-only investors before the actual launch, thus helping to create momentum in the bookbuild.