October 4, 2010 / 10:42 AM / 7 years ago

China's Goldwind raises $917 million in HK IPO: source

HONG KONG (Reuters) - China’s second-largest wind turbine maker, Xinjiang Goldwind Science & Technology (002202.SZ), raised $917 million by pricing its Hong Kong initial public offering at the top of an indicated range, a source familiar with the deal said on Saturday.

Goldwind, already listed in Shenzhen, the smaller of Mainland China’s two stock exchanges, sold 395.3 million shares at HK$17.98 each, the top of the range of HK$15.98 to HK$17.98 each, the source said.

The source was directly involved with the deal but is not authorized to speak publicly on the matter.

Goldwind, which originally planned to raise up to $1.2 billion in the Hong Kong IPO, shelved its plan in June, citing poor market conditions.

Hong Kong's Hang Seng Index .HSI has gained 11 percent in the third quarter, with more than 20 companies hitting the market to raise funds in these two months, including American International Assurance's (AIA) $15-billion Hong Kong IPO.

Goldwind’s IPO comes after its competitor, China Ming Yang Wind Power Group Ltd MY.N, the country’s largest non-state controlled wind turbine manufacturer, fell 5.4 percent below their IPO price in their debut on the New York Stock Exchange on Friday.

At the offering price range, Goldwind is valued at 16.9 times forecast 2010 earnings estimated by bookrunners.

By comparison, Chinese turbine maker Dongfang Electric (1072.HK) trades at 28 times forecast 2010 earnings, while China High Speed Transmission (0658.HK), a maker of wind gear for wind turbines, trades at 13 times.

    China plans to spend $736 billion over the next decade to harness wind, solar, nuclear and other clean energy technology in a bid to reduce the nation’s dependence on cheap but dirty coal.

    China burns coal to generate more than 70 percent of its power needs.

    Goldwind's shares gained 1.6 percent in Shenzhen on Thursday at 19.26 yuan. Its shares have gained 7.5 percent this year, outperforming the Shanghai Composite Index. .SSEC

    Goldwind’s trading debut is set for October 8, under the symbol “2208” (2208.HK).

    JP Morgan (JPM.N) and CICC are joint global coordinators, together with Citigroup (C.N), while Goldman Sachs (GS.N) and Haitong Securities are joint bookrunners of its IPO.

    Editing by Sugita Katyal

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