Dec. 7 (Bloomberg) -- Sinovel Wind Group Co., a Chinese wind turbine maker, sought new approval for an initial public offering in Shanghai after the review of a previous proposal was canceled by the country’s industry regulator.
Sinovel seeks 3.4 billion yuan ($510 million) from the share sale to fund expansion, according to a statement posted on the website of the China Securities Regulatory Commission yesterday. The commission said Oct. 27 it canceled a meeting to consider Sinovel’s original IPO proposal because “certain matters” needed investigation. It didn’t say what they they were.
CSRC will review the new IPO application on Dec. 10, it said in a separate statement yesterday.
Sinovel aims to be the world’s largest wind-turbine maker in five years and plans to sell about 10 percent of its enlarged share capital to fund the construction of a research center and two manufacturing bases, according to a prospectus released yesterday. It plans to set up factories and offshore wind projects to benefit from China’s demand for cleaner energy.
The company applied to sell 105.1 million shares for a listing in Shanghai, the CSRC said yesterday.
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 turbines to domestic power producers including China Huaneng Group, China Guodian Corp., China Datang Corp., China Huadian Corp. and project developer China WindPower Group Ltd.
Beijing-based Sinovel said Oct. 15 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.
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