Seven key investors will pay a total of US$260 million for shares in the renewable-energy unit of China Datang Corp (中國大唐), China’s second-biggest power producer, according to the prospectus for the company’s Hong Kong initial public offering (IPO).
China Power International Holding Ltd (中電控股) will buy a US$10 million stake in China Datang Corp Renewable Power Co (大唐新能源), while Thomas Lau (劉鑾鴻), brother of Hong Kong billionaire Joseph Lau (劉鑾雄), will take a US$20 million share, the prospectus shows.
The renewable-energy unit of China Datang Corp is targeting capacity of at least 20,000 megawatts in 10 years by developing wind, solar and biomass projects.
China Datang Renewable plans to raise HK$6.8 billion (US$876 million) in its share sale on Friday next week, adding to the record US$49 billion raised in Hong Kong IPOs this year, according to data compiled by Bloomberg.
The China Datang unit aims to boost its wind-power capacity by about 2,000 megawatts annually in the next six years, company president Hu Yongsheng (胡永生) told reporters in Hong Kong yesterday.
China wants at least 15 percent of its energy to come from renewable sources, including wind, by 2020. China erected more wind turbines last year than any other country and may install a record 18,000 megawatts of wind-power capacity this year, according to Bloomberg New Energy Finance estimates.
China Datang Renewable’s wind-power capacity may rise to 4,000 megawatts by the year-end from 2,717 megawatts in June, Hu said, adding that it could further rise to as much as 6,000 megawatts by the close of next year.
Aluminum Corp of China Ltd (中國鋁業公司) and Angang New Co will each buy a US$50 million stake in Datang Renewable, the prospectus shows. State Grid Corp of China (國家電網國際發展有限公司) and China Yangtze Power Co (中國長江電力股份有限公司) will also purchase US$50 million in shares, it says.
China Everbright Ltd (中國光大證券(香港)有限公司), UBS AG, Credit Suisse Group AG, JPMorgan Chase & Co and Macquarie Group Ltd are managing the share sale.
China Huaneng Group Corp (中國華能集團公司), China Datang’s bigger rival, plans to raise as much as US$1.3 billion in the IPO of its renewable energy unit in Hong Kong, according to a term sheet sent to investors on Nov. 29.