Shandong Power estimates rise in profit for year at nearly 33pc

H-share listing hopeful Shandong International Power Development (SIPD) estimates its profit rose nearly a third last year to 915 million yuan (about HK$850.95 million).

It made 691 million yuan the previous year, according to the preliminary offering circular.

SIPD plans to raise up to $2.2 billion from the issue of 1.27 billion shares at a fully diluted price-earnings multiple of eight to 10 times last year's estimated earnings, or between $1.38 and $1.73.

Of the new shares issued, 90 per cent are reserved for international placement and 10 per cent for public subscription starting next month.

The international placement also comprises a strategic corporate placement of 509.49 million H shares, or 9.9 per cent of the company's enlarged share capital, to Southern of the United States through an indirect subsidiary.

It is the third attempt by SIPD to launch a share offer, with failed attempts in 1994 and 1997.

Those were unsuccessful due to factors ranging from its failure to raise tariffs to sour market sentiment.