Huaneng Renewables in $800m Hong Kong IPO

Huaneng Renewables, the wind power unit of China Huaneng Group, China's largest power producer, shelved listing plans in December 2010 after rival Datang Renewable also entered the market and offered shares at a cheaper valuation.

The revised - and scaled-down - IPO was priced in the lower half of the indicative range at HKD2.50 per share, which values the company at about 14.3x projected earnings for 2011. By comparison, Datang Renewable listed at 13.1x projected earnings while Longyuan Power, China's largest wind farm operator, is currently trading at a multiple of 19x, Finance Asia reported.

The retail tranche of the IPO undersubscribed so only 6.5% of the deal will go to individual investors, with the remainder allocated to institutions. Prior to the listing, a total of 13 cornerstone investors placed orders worth $415 million.

Huaneng Renewables had an installed wind capacity of 3.5 GW last year and plans to reach 5.1 GW by the end of 2011. The Chinese government wants to expand national wind capacity to 180 GW by 2020, up from 45 GW at the end of last year.

SCPE is likely to be involved in another Chinese IPO before the year is out, with insurer New China Life planning a listing. The private equity firm holds a 1.5% in the company. In May, SCPE spent approximately $35 million on a stake of undisclosed size in Sunfonda Automobile Group, a Xi'an-based luxury auto dealership.

 

 

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• Topics
• Greater China
• Cleantech
• Temasek Holdings
• Standard Chartered Private Equity
• CIC