New | Huaneng Power declines on plan for new H-share placement

Shares of Huaneng Power International fell as much 4.58 per cent in morning trading on Thursday after the mainland company announced the placement of 365 million new H shares, which are expected to raise up to HK$3.14 billion from investors.

The placing price of HK$8.60 was made at a discount of about 8.4 per cent to the average closing price of HK$9.39 recorded by the H-shares quoted on the Hong Kong stock exchange for the past five consecutive trading days to November 5.

In its regulatory filing, Huaneng Power estimated net proceeds from the placement to reach HK$3.09 billion at HK$8.48 per share, after deducting commissions and other expenses.

The Beijing-based company, the listed unit of the mainland’s largest power producer, China Huaneng Group, said the net proceeds will be used to supplement its working capital.

The 365 million H-shares to be placed by Huaneng Power represented 10.27 per cent of the size of its 3.55 billion total existing H-shares issued on the Hong Kong stock exchange as of Thursday. It will make up 9.31 per cent of the firm’s H-shares as enlarged by the allotment and placement.

Huaneng Power said it will endeavour to obtain the stock exchange’s approval and permission for the listing and placement of the new shares “as soon as is practicable”.