China Huadian’s renewable energy unit files for US$4.5 billion Shanghai IPO to fund expansion of solar and wind capacity

Huadian New Energy aims to use the funds to add 15.2GW of solar and wind capacity across 23 provinces and municipalities

More Chinese companies, including China Mobile and CNOOC, are seeking listings back home to expand their Chinese investor base

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Wind turbines at Changma wind farm in Yumen City in northwest China’s Gansu Province, pictured on Dec. 8, 2021. Photo: Xinhua

Published: 1:00pm, 6 Jul 2022Updated: 10:53am, 7 Jul 2022

Huadian New Energy, the renewable energy unit of China Huadian, one of China’s five state-owned electricity generators, aims to raise about 30 billion yuan (US$4.5 billion) via a listing on the Shanghai Stock Exchange, according to its draft initial public offering (IPO) filing.

The Beijing-based company, which is engaged in solar and wind power generation and claims to have 27.24 gigawatts (GW) of installed capacity, is seeking the A-share listing after it was delisted from the Hong Kong bourse following a privatisation deal by its parent company in June 2020.

Previously called Huadian Fuxin Energy, the company is seeking to raise a far higher amount than the US$319 million it raised in its 2012 Hong Kong IPO. China Huadian owns about 83.4 per cent of Huadian New Energy through its subsidiary and an affiliate company.

Huadian New Energy plans to issue new shares amounting to at least 15 per cent and no more than 30 per cent of its enlarged issued share capital, including an overallotment option if there is strong demand.

Solar panels cover hillsides in Zhangjiakou, in China’s northern Hebei province, on November 15, 2021. The country aims to get 25 of its power from renewable sources by 2030. Photo: AFP

“The company has seized upon the opportunities given by government policies to quickly expand our installed capacity,” it said in the draft prospectus filed late last week. “However, if policies for the renewable energy sector were to change significantly going forward, it would be unfavourable to the company’s future growth.”

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