China Three Gorges plans $3.5b IPO of unit in one of biggest listings in 2020

Photo: Alessandro Stigliani/Unsplash

State-owned China Three Gorges Renewables Group Co. is seeking to raise 25 billion yuan ($3.5 billion) in what could be one of the country’s biggest initial public offerings this year.

The company plans to sell as many as 8.57 billion shares in Shanghai, according to a prospectus posted on the website of the China Securities Regulatory Commission. The assets to be listed are mainly domestic solar and wind farms, as well as small hydropower plants, with a total capacity of almost 10 gigawatts.

If trading started this year, the IPO would be the second-biggest in China during 2020, after Beijing-Shanghai High Speed Railway Co. raised $4.3 billion in a January debut, according to data compiled by Bloomberg.

The listing comes as parent company, China Three Gorges Corp., seeks to establish a new unit to hold international assets, which it has snatched up in the past decade, particularly in Latin America. In December, the state-owned giant was working with advisers on setting up the entity, with a view to consider a listing of the whole unit or some of the assets, Bloomberg reported.

China’s renewables industry is in transition. The country is adopting a more market-driven approach for clean energy development, moving away from subsidies and seeking to utilize idle capacity. Developers are now required to bid for state funding, while Beijing is also promoting plants that won’t get financial support so they can compete better against fossil fuels.

Three Gorges Renewables will use 20 billion yuan of the proceeds to fund seven offshore wind farms, and the remainder will be for working capital, according to the prospectus. This will boost the company’s power capacity, improve profitability and enhance its competitiveness, it said.

It expects to operate 6 gigawatts of offshore wind power capacity by the end of this year including projects under construction, from about 1.47 gigawatts as of Dec. 31.

The company, formerly known as China Three Gorges New Energy Co., said in February it has started construction on 58 billion yuan worth of renewable power plants, part of China’s efforts to restart major projects to help stabilize economic growth amid the coronavirus outbreak.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.