A new company created from Shanghai Chaori Solar Energy Science & Technology Co. jumped 10-fold in its first day of trading.
GCL System Integration Technology Co., which is using Chaori Solar’s old stock ticker, started trading on Wednesday at 1.22 yuan a share in Shenzhen and closed at 13.25 yuan. Chaori Solar last traded at 1.91 yuan a share on May 28, 2014 and was the first company to default on China’s onshore bond market.
GCL-Poly Energy Holdings Ltd., the world’s biggest maker of silicon used in solar devices, acquired Chaori Solar in November and renamed it after injecting assets. With Chinese initial public offerings suspended after an $4 trillion stock rout, GCL Poly was able to benefit from a back-door listing, according to JK Life Insurance Co.
“It’s the latest crow-turning-into-phoenix story in China’s market and GCL is realizing its listing through the back-door channel,” said Wu Kan, a Shanghai-based fund manager at JK Life Insurance.
Golden Concord Holdings Ltd., the parent of GCL-Poly, and eight investors bought a combined 66 percent stake in Chaori Solar for 1.46 billion yuan ($240 million) under a restructuring proposal, GCL-Poly said in November.
— With assistance by Shidong Zhang, and Yi Zhu