On Tuesday, Hoymiles, a microinverter manufacturer to be listed on the Science and Technology Innovation Board (STAR) of A-shares, released its issue price of 557.80 yuan/share, the highest IPO price ever in the history of China’s A-shares. Investors will need to pay nearly 280,000 yuan (44,128 USD) for one lot of shares.
Hoymiles issued 10 million shares at 557.80 yuan/share, raising 5.406 billion yuan in total after deducting the issuance expenses, far exceeding the 558 million yuan needed for the projects.
The projects, according to Hoymiles, include the construction of an intelligent manufacturing base, the industrialization of energy storage inverter, the upgrading and construction of intelligent electrical equipment sets and the supplement of working capital.
While the company’s revenue is less than 1 billion, its total market capitalization will exceed 20 billion upon IPO, with its P/E ratio reaching 225.94 times. It demonstrates the market’s high expectation towards the company’s development and performance.
According to IHS Markit, the global solar inverter industry will maintain an average growth rate of more than 20% in the next few years to reach 400GW by 2025.
Maximize Market Research revealed that the compound growth rate of microinverter market will also exceed 20% in the next few years.
The market share of Hoymiles in the field of microinverter is about 1%. As the product performance is similar to that of the leading microinverter maker Enphase (the market share is about 20%-25%), the company has massive growth potential.
