China Resources New Energy will raise up to $3.6 Billion in Shenzhen’s largest IPO
A filing on Thursday showed that China Resources New Energy has set its price for Shenzhen's IPO at 10.11 Yuan per share. This could raise as much as $24.5 billion ($3.6 billion), if the option to sell more shares is used.
China Resources Power's renewable unit will raise 21,30 billion yuan, but if demand is high it can exercise a greenshoe option and sell additional shares. This would fall short of the original target of 24.5 billion dollars. The sale would meet the original target if the greenshoe option were used.
LSEG data shows that the deal will be Shenzhen’s biggest IPO ever, surpassing Yihai Kerry Arawana’s 13.9 billion yuan IPO in 2020. It will also be China’s largest onshore IPO, since Beijing-Shanghai High-Speed Railway in Shanghai raised 30.7 billion yuan in 2009.
China Resources New Energy sells about 2,11 billion shares prior to the greenshoe. The company develops and operates photovoltaic and wind farms in China. The option would amount to 316.1 millions shares, bringing the total deal to 2.42 billion shares.
The filing revealed that 616 investors, both institutions and individuals, who managed 10,218 accounts in the offline tranche took part in the "early price consultation". After invalid and high-bids were removed from the bids,?461 individuals managing?9492 accounts placed valid bids.
According to the filing, strategic investors will receive 1,05 billion shares or half the base deal. The filing states that strategic investors will take 1.05 billion shares, or half of the base deal.
According to the filing, the?shares will begin?subscription? on June 22. The proceeds from the listing will be used to invest in wind and solar energy projects.
(source: Reuters)
