HONG KONG, Feb 8 (Reuters) - China Huaneng Group Corp, the country’s largest power producer, plans to float shares of its wind power unit, aiming to raise $1 billion from a Hong Kong initial public offering this year, sources close to the deal said.
Huaneng’s wind power unit planned to raise at least $1 billion from a Hong Kong IPO and may also sell shares in Shanghai, Bloomberg reported, citing sources close to the deal.
China Longyuan Power Group Corp (0916.HK), the world’s fifth-largest wind power generator, garnered strong investor interest in its $2.6 billion IPO last December. Its shares have gained 9 percent from its IPO offering price.
Other green IPOs in the pipeline include Chinese wind power producer Xinjiang Goldwind Science & Technology Co (002202.SZ), already listed in Shenzhen, which aims to raise $1.5 billion from a Hong Kong IPO in the first half of this year, sources told Reuters earlier. [ID:nTOE60I05Q]
CICC, Citigroup (C.N) and Haitong Securities are handling the deal.
China aims to boost wind-generated power to 100 GW by 2020 with investment potentially at more than $150 billion, which will likely make it the world leader in wind energy. Increasing investment in the sector could herald a wave of public offerings from Chinese renewable energy companies.
Renewable energy accounts for just a fraction of 1 percent of China’s total electricity output. The coal-dependent nation hopes to raise the level to 10 percent by 2010 and 15 percent by 2020. (US$1=HK$7.75)