Nuclear power firm CGN draws 15 cornerstone investors for IPO
CGN Power, the mainland's biggest nuclear energy company by installed capacity, has drawn 15 large funds and corporations as cornerstone investors to buy about 40 per cent of its US$3 billion initial public offering.
CGN Power, the mainland's biggest nuclear energy company by installed capacity, has drawn 15 large funds and corporations as cornerstone investors to buy about 40 per cent of its US$3 billion initial public offering.
The firm, which runs the Daya Bay nuclear plant near Shenzhen, secured orders from Singapore's sovereign wealth fund GIC, US hedge fund manager Och-Ziff Capital, China Life Insurance and China Development Bank as well as distressed asset manager China Cinda, after expanding its syndicate team to assist the share sale, sources said.
"No cornerstone investor can buy more than US$100 million of the shares as demand is red hot," a source familiar with the book-building process said, adding that the company wanted to manage the investor selection process to allow more participation from other institutional investors.
The company will begin an official roadshow on Monday and will price the deal on December 3, followed by a listing on December 10.
The three IPO sponsors - Bank of America Merrill Lynch, China International Capital Corp (CICC) and ABC International, the investment arm of Agricultural Bank of China - have been joined on the sales force by CLSA, Morgan Stanley, Goldman Sachs, and JPMorgan as book-runners.
"New economy" stocks would be the key investment theme next year, Desmond Tjiang, a Hong Kong-based fund manager at PineBridge Investments, said yesterday.