JinkoSolar Holding Company (JKS) saw its stock soar 5.47% in pre-market trading on Friday following the announcement of its intention to sell a significant stake in its subsidiary. The Chinese solar module manufacturer revealed plans to sell up to 300.2 million A shares of its main operating subsidiary, Jiangxi Jinko, which is listed on the Shanghai stock exchange.

The share sale will be conducted through inquiry transfer and placement to qualified institutional investors. JinkoSolar stated that the offer price would be no less than 70% of the average trading price over the past 20 consecutive trading days. This move is expected to reduce JinkoSolar's ownership in Jiangxi Jinko from 58.59% to approximately 55.59%, maintaining a controlling interest in the subsidiary.

JinkoSolar's Chief Executive, Xiande Li, explained the strategic rationale behind the share sale, stating, "We believe that the sale of A Shares will strengthen our cash flows, improve our cash position, support our ongoing business operations, and enhance our resilience to risks." The company intends to use the proceeds to bolster its operations, improve cash flow, and strengthen its overall financial position. This decision appears to have resonated positively with investors, as reflected in the significant pre-market stock price increase.