China Yangtze Electric Power - the proposed listing vehicle for the gigantic Three Gorges dam project - plans to issue one billion new shares to raise four billion yuan (about HK$3.75 billion) this year.
The initial public offering - a crucial step in the project's financing - is expected to boost the A-share market, which has been plagued by irregularities.
The Shanghai-based International Finance News quoted China Yangtze company secretary Zhang Dingming as saying that it planned to make a listing application to the China Securities Regulatory Commission mid-year and strive to launch this year,
Analysts said the company would face a tough time selling its shares at a high valuation.
Mr Zhang said the company entered a 12-month guidance period last November, during which it will receive IPO advice from Citic Securities. General manager Lu Youmei said last September it wanted to first list in Shanghai and then Hong Kong.
Nomura analyst Pierre Lau said the company's existing core operating asset, the Gezhouba Dam - a 21-year-old 2.71 gigawatt hydro plant some 60km away from the Three Gorges project - has a return on investment of about 5 per cent. This compares with expected returns of at least 10 to 12 per cent on new power projects in China.
