Sinovel Wind Co., a Chinese wind turbine maker, faces further investigation by the China Securities Regulatory Commission, which canceled today’s planned meeting to consider the company’s IPO.
The watchdog needs to probe “certain matters” at Sinovel before considering permitting the sale of 105.1 million shares in an initial public offering on the Shanghai Stock Exchange, the commission said in a statement on its website yesterday evening, without giving details.
Sinovel, aiming to challenge the world’s largest wind-turbine maker in five years, plans to sell about 10 percent of its enlarged share capital to fund 1.7 billion yuan ($255 million) of projects, according to a prospectus released on Oct. 22. Sinovel plans factories and offshore wind projects to benefit from China’s growing demand for clean energy.
Sinovel mainly makes 1.5- and 3-megawatt wind turbines. It had production capacity of 3.3 gigawatts at the end of last year, with 99.6 percent of sales from 1.5-megawatt turbines.
The company has supplied wind turbines to domestic power companies, including China Huaneng Group, China Guodian Corp., China Datang Corp., China Huadian Corp. and project developer China WindPower Group Ltd.
The Beijing-based turbine maker said Oct. 15 that it completed the production of China’s first 5-megawatt prototype, the nation’s largest, and plans to start producing 6-megawatt wind turbines in the first half of 2011.
-Wang Ying in Beiing. Editor: Josh Fellman