China Resources New Energy has set the price for its Shenzhen initial public offering at 10.11 yuan per share to raise as much as 24.5 billion yuan ($3.6 billion) if an option to sell additional shares is fully used, a filing showed on Thursday.
The renewable unit of China Resources Power will raise 21.30 billion yuan before a so-called greenshoe option to sell more shares if there is high demand, which would be short of its original 24.5 billion yuan target. However, the sale would match that target exactly if the greenshoe were exercised.
Either way, the deal is set to be Shenzhen’s largest IPO on record, surpassing Yihai Kerry Arawana’s 13.9 billion yuan listing in 2020, and China’s largest onshore IPO since Beijing-Shanghai High-Speed Railway raised 30.7 billion yuan in Shanghai in 2009, LSEG data show.
China Resources New Energy, which develops and operates wind farms and photovoltaic power plants across China, is selling about 2.11 billion shares before the greenshoe. The option would add up to 316.1 million shares, taking the total deal size to about 2.42 billion shares.
The filing showed 616 investors in the offline tranche, including institutions and individuals, managing 10,218 accounts, took part in the early price consultation. After invalid and high bids were removed, 461 investors managing 9,492 accounts submitted valid bids.
Strategic investors will take 1.05 billion shares, or half of the base deal, according to the filing. They include China Chengtong Holdings Group, Shenzhen Gas, Shaanxi Investment Group, China Life Insurance, New China Life Insurance, Taikang Life Insurance and the National Social Security Fund.
The shares are due to start subscription on June 22, the filing said. The listing proceeds will go toward investment for wind and solar projects.
($1 = 6.7577 Chinese yuan)
Reuters
