China's largest wind power firm, Huaneng Renewables Corp, is to tap the Hong Kong stock market through a US$1.45 billion listing in a deal that will cross swords with its arch-rival.
Huaneng, the renewable flagship of the nation's largest independent power producer China Huaneng Group, will compete with China Datang Corporation Renewable Power, which is seeking to raise up to US$1 billion on the Hong Kong stock exchange.
Comparing the fundamentals of the pair, Huaneng executive director and president Zhao Shiming said yesterday that the group led the market with higher profitability, utilisation hours of its wind farms and earnings before interest, taxation, depreciation and amortisation in the past three years.
'We are having a roadshow at the same time, which is a good thing,' Zhao said. 'The capital market is not very good and has some volatility, but we are confident about our listing.'
Huaneng and Datang will add to a record of US$49 billion funds raised on the Hong Kong stock exchange through initial public offerings so far this year.
Huaneng plans to offer 2.48 billion H shares at a price between HK$2.98 and HK$3.98 a piece, with an option to offer an extra 372.85 million H shares. The sale price will be fixed on December 10.