16 December 2010
Chinese power firm Datang International has floated its renewable power arm on the Hong Kong Stock Exchange, raising around US$643 million.
Meanwhile, another Chinese wind developer which spun off from a state-owned utility, Huaneng New Energy Industrial, cancelled plans for an initial public offering (IPO) on the same exchange.
China Datang Corporation Renewable Power sold 2.14 billion shares, each for HK$2.33($0.30), raising approximately $643 million. The IPO was priced at the bottom of the range, which had a maximum offer price of HK$3.18 per share. The IPO was arranged by UBS, China Everbright Securities, JPMorgan Chase and Macquarie.
But this week also saw Huaneng ditch plans for an IPO, according to local media reports, which it hoped would raise around HK$7.8 billion. The cancellation was put down to unexpected market volatility.
Datang Renewables had 2.7GW of installed capacity at the end of June 2010, according to the prospectus for the listing, with a further 22 wind farms under construction that would add an additional 1.5GW to the firm’s portfolio. The firm plans to have 5.5GW installed by the end of 2011. It also has solar and biomass energy projects in its pipeline.
Profits for the first half of 2010 were RMB290 million ($43 million), the firm reports in the prospectus, up on a RMB219 million profit in the same period in 2009. Its full-year profit was RMB367 million in 2009, RMB219 million in 2008 and RMB90 million in 2007.
About 60% of Datang’s installed capacity is located in Inner Mongolia, which the firm said has the most abundant wind resources in China.
The firm reported revenues from electricity sales to local utilities of RMB1,043 million in the first six months of 2010, up from RMB1,384 million for the whole of 2009. Income from the sale of UN-certified carbon credits was RMB101.6 million in the first six months of this year.
Datang spun off from its parent in July this year, and the state-owned utility remains its controlling shareholder.
Jess McCabe
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