Huaneng Renewables’ Staggering $1 Billion IPO Deal
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Huaneng Renewables Corp., the wind-power unit of China Huaneng Group is China’s biggest electricty producer. The company plans to raise about $1 billion in relaunched Hong Kong initial public offering. According to a report on WJS:
Huaneng Renewables Corp., the wind-power unit of China Huaneng Group is China’s biggest electricty producer. The company plans to raise about $1 billion in relaunched Hong Kong initial public offering. According to a report on WJS:
The wind-farm operator, which scrapped a plan to raise as much as $1.28 billion in a December listing in the city, has started premarketing this week and is scheduled to list on June 9 sources say. Morgan Stanley, China International Capital Corp., Goldman Sachs Group Inc. and Macquarie Group Ltd. are said to be handling the deal.
The unit of China Huaneng Group Corp. aims to start trading in early June, said the people, who declined to be identified because the information is private. Huaneng Renewables scrapped its earlier plan because of unexpected and excessive market volatility, the company said on December 13.
The 7.8 percent drop in the benchmark Hang Seng Index (HSI) since its 2010 peak in November has delayed initial share sales of companies including Australia’s Resourcehouse Ltd. and China’s Hilong Holding Ltd. Huaneng Renewables, seeking funds to expand capacity and meet rising Chinese demand for clean energy, had previously sought to raise as much as $1.3 billion.
[quote]“The group is attractive as there’s all the upside of energy consumption and power consumption growth in China over the next few years,” Michael Parker, a senior research analyst at Sanford C. Bernstein & Co., said by phone from Hong Kong. “Renewable companies are facing decreasing wind-turbine prices, which will continue to fall and improve the economics of new wind farms in China.”[/quote]Turbine prices dropped about 5 percent in the first quarter from the previous three months to an average of 3,797 yuan ($584) per kilowatt, according to Bloomberg New Energy Finance.
The government wants at least 15 percent of the country’s energy to come from renewable sources, including wind, by 2020. China increased its wind-power capacity in 2010 by 67 percent to 42.5 gigawatts, data from Bloomberg New Energy Finance show.
China is now #1 in clean energy investments, ahead of Germany, now in third position having invested US$54 billion in 2010 up from US$39 billion the previous year. China is now also the world’s lead producer of wind turbines – and is the nation with the highest clean energy capacity:
