Energy
Datang Renewable raises $643m in HK IPO
Updated: 2010-12-13 15:01
(Agencies)
HONG KONG - China Datang Corp Renewable Power Co, the nation's second-biggest wind-power producer by capacity, raised $643 million selling shares in Hong Kong at the bottom of its range, as investors shun renewable energy companies, Bloomberg News reported Monday.
The unit of China Datang Corp sold 2.14 billion shares at HK$2.33 ($0.3) apiece, after offering them at HK$2.33 to HK$3.18 each, according to two people with knowledge of the initial public offering (IPO), who declined to be identified before an announcement, the report said.
"Wind power is seen as being too reliant on support from China's government," said Francis Lun, general manager of Fulbright Securities Ltd in Hong Kong. "I don't think there's much appetite for wind power companies in Hong Kong as we already have two listed here," Lun said.
The proceeds of Datang's share sale will be used to expand its wind-power generating capacity and pay bank loans, the prospectus shows.
In addition, Rival Huaneng Renewables Corp, a unit of China Huaneng Group Corp, canceled its IPO, the report said.
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