China Resources New Energy shares have tripled in value after the largest IPO in Asia for 2026
China Resources New Energy's share price almost tripled on its Shenzhen debut Thursday after the wind and solar energy company raised $24.5 billion ($3.61 billion), Asia's largest initial public offering this year.
The IPO price was 10.11 yuan. The stock surged up to 198%, which triggered a short trading suspension.
The debut is a test to see if mainland listings can attract large numbers of investors and if they can?return household savings to the stock exchange after a slowdown in IPOs.
Blue-chip index CSI300 slid by nearly 2% during early morning trading.
LSEG data show that A-share IPOs or listings on Shanghai Shenzhen Beijing exchanges raised $7.7 billion during the first half of this year. This is up 64.4% compared to the same period a previous year. The total IPO proceeds of Chinese companies, which includes offshore listings, almost doubled to $16.2billion.
A good start for China Resources New Energy may encourage other deals to be made, such as the memory chip maker ChangXin Memory Technologies. CXMT is planning an IPO in Shanghai worth 29.5 billion yuan.
China Resources New Energy, a subsidiary of China Resources Group, a state-owned company listed in Hong Kong and part of the China Resources Group, is controlled by China Resources Power. It builds, invests and operates wind and solar farms in China.
LSEG data shows that this is the largest IPO in Shenzhen history. Retail investors ordered 6.4 trillion yuan worth of online portions of the deal. This is more than 683 times the retail tranche.
Before the option of over-allotment, the company sold 2,11 billion shares. This is equivalent to 16.2% its enlarged share capital. If the option is fully utilised, the sale will increase to 2.42 billion.
The proceeds from the listing will be invested in wind and solar energy projects.
The IPO 'comes at a time when the government aims?to?generate?half of its electricity by 2030 using?non fossil sources, despite power producers facing falling power prices and grid limitations, as well as heavy competition.
(source: Reuters)
