Goldwind in 1.8b yuan Shenzhen SME offering
Goldwind Science and Technology, the mainland's largest wind-turbine makers, started its offering yesterday to raise up to 1.8 billion yuan in an initial public offering on the Shenzhen small- and medium-sized enterprise board.
The Xinjiang-based company was selling 50 million shares, 10 per cent of its enlarged share capital, at 36 yuan each, 29.98 times forecast earnings for the year, it said. The offering will be opened until today and the allotment result will be announced next Tuesday.
Goldwind, which had 2.8 per cent of the world's wind-power generator market last year, said the proceeds raised would be used for capacity expansion to meet rising demand.
The use of wind power, a clean and renewable energy source, has grown rapidly on the mainland in recent years. By the end of last year, the total installed capacity of wind power in the country was about 2,600 megawatts, of which half is newly installed capacity in the past year.
The mainland's wind-power equipment industry was expected to grow at an annual compound rate of 19 per cent between this year and 2020 as the government was keen to increase the use of clean and renewable energy to save energy and cut emissions, said Wang Peng, an analyst at China Merchants Securities.
He said wind-power makers would benefit from preferential policies, such as setting higher prices for electricity generated by renewable energy and minimum requirement of 70 per cent home-made wind-power equipment in tenders.
The National Development and Reform Commission has said it planned to raise the ratio of renewable energy in total energy consumption to 10 per cent by 2010 and 15 per cent by 2020, up from 8 per cent.