State-owned China Three Gorges, best known as the operator of the world’s largest hydroelectric power plant, is preparing to list a wind and solar power subsidiary in Shanghai in what would be the country’s biggest domestic IPO in more than a year.
The move comes as Chinese companies, especially state-owned energy groups, announce plans to advance President Xi Jinping’s promise that the country achieve carbon neutrality by 2060.
China Three Gorges Renewables (Group) said Friday that it set a preliminary price for its initial public offering at 2.65 yuan per share. With the maximum issuance put at 8.57 billion shares, the Beijing-based power company is expected to pocket 22.5 billion yuan ($3.48 billion) after offering costs. The fresh capital will go toward building offshore wind farms.
This would produce the largest domestic IPO by an unlisted Chinese company since Beijing-Shanghai High-Speed Railway raised $4.4 billion in January 2020. China Telecom, which has its primarily listing in Hong Kong, has applied to sell shares in Shanghai in what is expected to be an even larger offering.
On completion of its share sale, CTG Renewables would debut on the Shanghai Stock Exchange in early June.
According to the offering prospectus, the proceeds will finance seven offshore wind power projects along China’s coast, from the Bohai and Yellow seas in the north to the South China Sea in the south. One project, planned for the Shandong Province coast, would be the country’s first offshore wind plant combined with aquafarming.