A shareholder of China Power International Development was seeking to raise as much as $156.6 million through a stock sale yesterday, according to market sources.
The block trade of 57,478,000 existing shares at $2.65 to $2.725 each was arranged by Morgan Stanley.
The seller was not identified in a term sheet sent to fund managers.
The share sale comes after the central government approved electricity price increases which should fatten utilities' bottom lines.
China Power International Development, a unit of the nation's fifth-largest electricity generator, saw its average tariff rise by 18 yuan per megawatt-hour, or about 7 per cent.
'The tariff increases would help to lower the costs of power firms, which frequently suffers from coal price increases and coal shortages,' one fund manager said.
