Nexolon Co., South Korea’s biggest maker of silicon ingots and wafers used in solar cells, surged as much as 55 percent in its trading debut after pricing the initial share sale below the bottom of a marketed range.
The shares rose as high as 6,200 won, before ending the session 30 percent higher at 5,200 won on the Korea Exchange. The benchmark Kospi Index (KOSPI) rose 0.7 percent.
The Seoul-based company raised 85.5 billion won ($74 million) after selling 21.37 million shares for 4,000 won apiece, below the bottom of a marketed range of 6,700 won to 8,000 won. Nexolon plans to use the proceeds from the share sale to build a factory and purchase equipment to boost annual output capacity, the company said in a regulatory filing.
“The IPO price was set way below the company’s original target, giving price attractiveness to some investors,” Kim Dong Jun, an analyst with Shinhan Investment Corp., said by phone today. “We’ve seen the solar industry slump, but there’s hope that we may see some recovery next year as tumbling prices are likely to spur demand.”
Solar power is approaching the point of grid parity, where the cost of generating power from sunlight is similar to the cost of traditional sources, James Prendergast, executive director of Institute of Electrical and Electronics Engineers, said in June.