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Solar Maker Woongjin Energy Soars From IPO Price on First Trading Day

Woongjin Energy Co., a solar components maker, rose on its trading debut in Seoul on demand from investors who missed buying the stock in its initial public offering.

The shares advanced 45 percent to 13,800 won as of 10:54 a.m. on the Korea Exchange from the offer price of 9,500 won. The benchmark Kospi index retreated 1.3 percent.

Woongjin raised 150 billion won ($124 million) last week by selling 15.88 million new shares above its offer range of between 7,500 won and 8,500 won. Individuals applied for 162 times the number of shares allocated to them, according to lead arranger Daishin Securities Co.

Woongjin’s operating profit may grow 26 percent annually by 2012, helped by increasing output and strong demand, Han Byung Hwa, an analyst at Hyundai Securities Co. said in a report today. Han rated Woongjin a ‘buy’ with a six-month target price of 17,000 won.

Woongjin plans to spend 270 billion won between November last year and September to boost its silicon ingot production capacity to meet rising demand, the joint venture of Woongjin Holdings Co. and SunPower Corp., the second-biggest U.S. manufacturer of solar-power modules, said on June 1.

The global market for solar energy may grow 60 percent a year by 2012, according to the company. Woongjin Energy’s sales reached 118.9 billion won last year.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net Saeromi Shin in Seoul at sshin15@bloomberg.net

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