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JinkoSolar Holding Co., Ltd. Message Board

  • jimjimbo51 jimjimbo51 Sep 19, 2013 8:10 PM Flag

    Eureka. I don't think this is dilution. Its a follow on offering. Read the press release.

    JKS has about 22 million shares outstanding, and about 10 million in the float. I do not think this is additional share dilution.

    Secondary offerings definition....
    Typically, such an offering occurs when the founders of a business (and perhaps some of the original financial backers) determine that they would like to decrease their positions in the company. This kind of secondary offering is common in the years following an IPO, after the termination of the lock-up period. Owners of closely held companies sell shares to loosen their position - usually gradually, so that the company's share price doesn't plummet as a result of high selling volume. This kind of offering does not increase the number of shares of stock on the market, and it is most commonly performed in the case of a company that is very thinly traded. Secondary offerings of this sort do not dilute owners' holdings, and no new shares are released. There is no "new" underwriting process in this kind of offering.

    Sentiment: Strong Buy

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    • man - start thinking please

      the shares are offered by Jinko because they want to take in some new cash - from the pr "JinkoSolar intends to use the net proceeds from this offering for general corporate purposes, which may include expanding manufacturing capacity, the development of solar power projects and working capital."

      and of course this means dilution by around 20% (including the underwriter's over-allotment option) - but this is already priced into the shares as the offering was announced just below $20.

      would expect the stock to move back up over time

      although "investors" like you don't deserve any gains I guess

    • You must be the village idiot around here. hahahahahaha.... 17% dilution loser....

      • 1 Reply to treligata
      • Jimjimbo is absolutely correct, this press release this evening is NOT an additional share offering.
        It is a follow-on the shelf that was announced back on August 15th.
        This offering ends on Sept 25th. Now JKS has granted ONLY the underwriters a 30-day option to purchase up to an additional 570,000 ADSs.
        This is GREAT News, as the cat is presently out of the bag, the dilution from the high price of $20.00 is already baked in the cake. Buy and hold and make some good money with this stock within the long term. There has been some good buying activity in after hours this evening.

        Sentiment: Buy

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