CGN Power raises HK$23.8b in second-biggest IPO of the year

CGN Power, the mainland’s biggest nuclear energy company by installed capacity, has raised HK$ 23.8 billion dollars in one of the hottest initial public offerings this year.

Shares were 287.3 times oversubscribed and were priced at HK$ 2.78 each, at the high end of expectations.

Shares start trading on Wednesday.

The amount raised falls just short of the US$ 3.1 billion in January’s IPO by HK Electric Investments, a unit of Li Ka-shing controlled Power Assets, in what remains the largest listing this year.

In an unusual step, CGN gave full allocation to smaller retail investors who applied for minimum 1,000-share lots. This meant fewer shares were available for institutional and private banking clients.

The shares were priced at a price—to-earnings ratio of 17.4, in line with clean-energy peers such as China Longyuan Power, the mainland’s largest wind power producer, which trades at 16 to 19 times earnings.