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JinkoSolar plans stock sale after announcing US expansion

JinkoSolar Holding Co. Ltd. is kicking off a new round of fundraising a week, after the China-based solar cell and panel maker said it is moving ahead with plans to open a plant in the U.S.

The company on Feb. 6 said it expects to raise $71.3 million, assuming a public offering price of $20.93 per American depositary share. The company also expects to raise $34.9 million selling shares through a private placement to a company controlled by JinkoSolar's top two executives.

JinkoSolar shares were down nearly 8% at $18.76 at midday Feb. 7.

In January, JinkoSolar's board authorized the company to "finalize planning" for a U.S. panel manufacturing facility. The decision was announced shortly after President Donald Trump imposed tariffs on imported solar cells and panels.

The trade publication PV Magazine has identified JinkoSolar as the company behind a plan, dubbed "Project Volt," to build a solar equipment manufacturing plant and distribution center in Jacksonville, Fla. A JinkoSolar spokesman said in a Jan. 29 email that the company had not made a final decision about where to locate the facility.

While the solar tariffs Trump approved could lead to some new manufacturing in the U.S., analysts say such benefits will probably be limited.

The duties do not apply to the first 2,500 MW of solar cells imported to the U.S., and JinkoSolar could undercut competitors by assembling panels here from tariff-free cells made in Asia, Credit Suisse analyst Maheep Mandloi said in an interview. However, manufacturing cells is a bigger undertaking than assembling panels, and once the industry-wide quota is met, JinkoSolar believes its next best option is to pay tariffs to import foreign-made panels, Mandloi said.

JinkoSolar said its U.S. plant will have an annual manufacturing capacity of up to 1,500 MW.

Jacksonville city records say the unnamed company would create 800 new full-time jobs while using the Port of Jacksonville for "substantial imports and exports."

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are acting as joint bookrunners for the stock sale.