Shares of Chinese solar company Shenzhen Topraysolar Co. (002218.SZ) surged almost five fold when the company began trading yesterday.
Topraysolar is the first Chinese solar cell manufacturer to list its shares domestically on the Shenzhen Stock Exchange. Shares closed at 51.62 yuan, up 378% from the initial pubic offering price of 10.79 yuan.
Bigger Chinese solar companies, such as SunTech Power (STP.N) and Yingli Green Energy (YGE.N), have listed on U.S. stock markets in recent years to benefit from growing investor interest in the west for renewable energy.
Recent policy changes in China, as well as this successful IPO show that the investment environment in Asia is also primed for renewable energy businesses.
Last December’s IPO of Xinjiang Goldwind Science & Technology Co. (002202.SZ), China’s biggest maker of wind power generation equipment, also demonstrated strong domestic support, when shares rose 264% on the first day of trading.
Topraysolar said it will invest its newly raised funds in expanding production.
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