Green power companies target HK$6b in IPOs to tap energy demand
Greens Power Equipment (China) and China Longyuan Electric Power Corp plan to raise up to a combined HK$6 billion in Hong Kong initial public offerings as they take advantage of rising mainland demand for alternative energy projects.
Both offerings are planned to be completed before the end of the year and investment bank Morgan Stanley of the United States is the sole adviser for the two companies.
Market sources indicated Greens Power, the smaller of the two firms, could start its offering before China Longyuan.
Greens Power, founded in 2002 and based in Shanghai, was solely owned by Greens Power of Britain and was hoping to sell a stake of up to HK$1 billion for a listing on the main board in late September or early October, sources said.
Two other sources said China Longyuan aimed to raise at least HK$5 billion by the end of the year.
Greens Power offers a variety of environmentally friendly boilers and heat-transfer products for the power generation and petrochemical industries.
Green energy, or alternative energy, is considered to be non-polluting and includes electricity production by geothermal, wind, solar or hydropower methods, instead of the traditional use of coal.
