A GUANGDONG power company has obtained a new tariff scheme with a higher rate of return and with a different calculation base to that of the mainland power firms slated for overseas listings.
The arrangement by Guangdong Electric Power Development Co comes as the company is about to hit Shenzhen's B share market after a global roadshow, scheduled to begin on May 8 in Hong Kong.
Market sources said the company would raise about US$100 million from the issue of B shares.
It already has A shares listed in Shenzhen.
A senior company official said yesterday the Guangdong Electric Bureau, the company's majority owner, had given it a rate of return of 17.5 per cent - higher than the 15 per cent caps on the four power companies slated for listings abroad.
The Beijing-granted guarantees on the four power companies, including Shandong Huaneng Power Development Co and Huaneng Power International, are intended to cushion investors from high inflation.
The calculation base of Guangdong Electric's tariff also comes with a difference.
