China’s biggest stock sale of 2021 may be in renewable energy, with Three Gorges unit’s IPO of 8.57 billion shares in Shanghai

The unit of China Three Gorges Corporation plans to sell up to 8.57 billion shares in Shanghai, it said in a prospectus filed to the Shanghai Stock Exchange

The state-owned company received written approval from China’s securities regulator

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Aerial photo of the Three Gorges Dam opening the floodgates to discharge the floodwater on the Yangtze River in central China’s Hubei Province on July 18, 2020. Photo: Xinhua

Published: 3:45pm, 26 Apr 2021Updated: 3:45pm, 26 Apr 2021

China Three Gorges Renewables Group is set for an initial public offering that could be the biggest in the country this year after securing regulatory approval.

The unit of China Three Gorges Corporation plans to sell up to 8.57 billion shares in Shanghai, it said in a prospectus filed to the Shanghai Stock Exchange, without giving the value of the funds to be raised. The state-owned company has received written approval from China’s securities regulator, according to a China Securities and Regulatory Commission statement Friday.

China Three Gorges Renewables announced last year it was seeking to raise 25 billion yuan (US$3.85 billion) in an IPO. The listing could easily be the largest debut in China in 2021 if it starts trading this year, according to data compiled by Bloomberg, topping Tianneng Battery Group’s US$697 million listing in January.

The parent is the world’s largest hydropower company and China’s largest clean-energy firm, according to the company website. Its renewables unit’s total assets – mainly solar and wind farms, as well as small hydro power plants – are valued at more than 140 billion yuan.

The issuance of shares is scheduled to start May 10, and the company will use proceeds to fund offshore wind power projects and replenish liquidity, the statement said.