CHINA LONGYUAN Power Group Corp, the country’s biggest wind-power producer, may raise as much as HK$17.5 billion (€1.5 billion) in a Hong Kong initial public offering.
The renewable energy provider plans to sell 2.14 billion shares at HK$6.26 to HK$8.16 apiece.
The top end of the range values the Beijing-based company, which is selling a 30 per cent stake in the IPO, at HK$58.3 billion or 28.9 times its 2010 earnings per share as estimated by banks involved in the sale.
Morgan Stanley and UBS AG are managing the sale.
Stocks of companies such as China WindPower Group Ltd and China Solar Energy Holdings Ltd have more than doubled in Hong Kong trading this year, as the mainland government encourages the use of renewable energy.
The country’s wind-power capacity will rise to 100,000 megawatts by 2020 from at least 20,000 megawatts next year.
China, the world’s biggest producer of greenhouse gases, burns coal to produce 80 per cent of its electricity and wants at least 15 per cent of the nation’s energy to come from renewable sources by 2020. – (Bloomberg)
