China Huadian’s renewable energy unit files for US$4.5 billion Shanghai IPO to fund expansion of solar and wind capacity
- Huadian New Energy aims to use the funds to add 15.2GW of solar and wind capacity across 23 provinces and municipalities
- More Chinese companies, including China Mobile and CNOOC, are seeking listings back home to expand their Chinese investor base
Previously called Huadian Fuxin Energy, the company is seeking to raise a far higher amount than the US$319 million it raised in its 2012 Hong Kong IPO. China Huadian owns about 83.4 per cent of Huadian New Energy through its subsidiary and an affiliate company.
Huadian New Energy plans to issue new shares amounting to at least 15 per cent and no more than 30 per cent of its enlarged issued share capital, including an overallotment option if there is strong demand.
“The company has seized upon the opportunities given by government policies to quickly expand our installed capacity,” it said in the draft prospectus filed late last week. “However, if policies for the renewable energy sector were to change significantly going forward, it would be unfavourable to the company’s future growth.”
