China Resources New Energy will start trading in Shenzhen on July 2 after an initial public offering that could raise up to 24.5 billion yuan ($3.6 billion), setting up the city’s biggest IPO on record and Asia’s largest listing so far this year.
The debut gives China’s stock market a blockbuster deal and tests investor appetite for clean energy as Beijing targets half of its electricity from non-fossil sources by 2030, even as power producers face falling power prices, grid limits and heavy competition.
The listing also gives parent China Resources Power a new funding channel for its renewable energy business.
China Resources New Energy said in a Shenzhen Stock Exchange filing on Tuesday that its shares would be listed on the exchange’s main board on Thursday.
The company sold 2.11 billion shares at 10.11 yuan each before an overallotment option, which allows banks to sell extra shares if demand is strong. If that option is fully used, the deal would rise to about 24.5 billion yuan.
The IPO is set to become the largest in Asia to date this year, according to LSEG data as of last week.
It would also overtake cooking oil producer Yihai Kerry Arawana’s 2020 Shenzhen listing, which raised about 13.9 billion yuan, to become the exchange’s largest ever, according to LSEG data.
Demand was strong. The online retail tranche was more than 683 times subscribed after a reallocation of shares, the listing filing showed.
China Resources New Energy develops and operates wind farms and photovoltaic power plants across China. The listing proceeds will go toward investment for wind and solar projects.
CICC and CITIC Securities are the deal’s joint sponsors and lead underwriters.
($1 = 6.7851 Chinese yuan renminbi)
Reuters
