China Three Gorges Renewables’ IPO receives strong response from investors eyeing gains from China’s carbon neutrality push

Name: China lights up first 100MW solar power plant as part of a green-energy push
Uploaded: 2021-06-03T08:48:28.000Z
Duration: 1 min 4 s
Description: China lights up first 100MW solar power plant as part of a green-energy push

The company’s online retail tranche was oversubscribed 190 times, which has led it to allocate more shares to this portion

Investors are quite enthusiastic about the renewable energy sector, which is being encouraged by Beijing, analyst says

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China’s capacity to generate electricity from wind and the Sun will nearly triple to more than 1,200GW by 2030, as it increases the share of non-fossil fuels in its energy mix. Photo: Shutterstock Images

Martin ChoiandEric Ng

Published: 4:48pm, 3 Jun 2021Updated: 4:48pm, 3 Jun 2021

The initial public offering (IPO) of China Three Gorges Renewables Group has received a strong response from investors looking to profit from China’s push for carbon neutrality by 2060.

The online retail tranche of the company, which is a unit of China Three Gorges Corporation, was oversubscribed 190 times, which has led it to allocate more shares to this portion.

“Investors are quite enthusiastic about the prospects of the renewable energy sector, as China has been encouraging its development, in line with the country’s long-term goals,” said Stanley Chan, director of research at Emperor Securities.

Chinese President Xi Jinping set the country its carbon neutrality goal in a speech at the United Nations General Assembly last September. He followed that up – in a speech at the UN’s Climate Ambition Summit in December last year – with a plan to nearly triple China’s capacity to generate electricity from wind and the Sun to more than 1,200 gigawatts (GW) by 2030, increasing the share of non-fossil fuels in China’s energy mix.

The renewable energy space in China also has the advantage of facing less regulatory risks than the country’s fintech and e-commerce sectors, which have come under pressure after China’s antitrust clampdown on monopoly practices, Chan said. “If China Three Gorges Renewable does well on its IPO debut, it could give the renewable energy sector a boost,” he added.

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China lights up first 100MW solar power plant as part of a green-energy push

Online retail investors have a 1.28 per cent chance of getting the shares, according to the company’s filing with the Shanghai Stock Exchange on Wednesday. The company’s 8.57 billion shares will be listed in China’s financial capital and were priced at 2.65 yuan each, allowing the company to raise up to 22.7 billion yuan (US$3.55 billion), according to its prospectus released last month. Its total assets, mainly solar and wind farms and some small hydropower plants, are valued at more than 140 billion yuan.

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