China Datang Corp.’s renewable energy unit will start taking orders for stock in its Hong Kong initial public offering tomorrow, seeking to raise HK$6.8 billion ($876 million) in the sale, two people familiar with the matter said.
Some 2.14 billion shares in China Datang Corp. Renewable Power Co. will be offered for HK$2.33 to HK$3.18 apiece, said the people, who declined to be identified before an announcement.
The world’s largest polluting nation wants at least 15 percent of its energy to come from renewable sources including wind by 2020. Datang Corp. Renewable is targeting capacity of at least 20,000 megawatts in 10 years by developing wind, solar and biomass projects, according to the company.
China Everbright Ltd., UBS AG, JPMorgan Chase & Co., Credit Suisse Group AG and Macquarie Group Ltd. are managing Datang Corp. Renewable’s share sale. Huang Yuan, a spokesman for China Datang, the nation’s second-largest power producer, couldn’t be immediately reached at his office for comment.
A record $49 billion was raised in Hong Kong through initial public offerings so far this year, according to data compiled by Bloomberg. China Datang’s bigger domestic rival China Huaneng Group Corp. plans to raise as much as $1.3 billion in the initial public offering of its renewable energy unit in Hong Kong, according to a term sheet sent to investors Nov. 29.
China erected more wind turbines in 2009 than any other country and may install a record 18 gigawatts of wind-power capacity this year, Bloomberg New Energy Finance estimates show. China Datang is planning a 200-megawatt wind farm in Inner Mongolia province, the local government said on Aug. 28.