May 24 (Bloomberg) -- General Electric Co. plans to buy $15 million of shares in the initial public offering of Huaneng Renewables Corp., the wind unit of China’s biggest power producer, two people with knowledge of the matter said.
A Standard Chartered Plc unit and CSR Corp., China’s largest listed trainmaker, plan to invest $50 million each in the offering, said the people, who declined to be identified before an announcement. The three companies are among key investors who have committed to buying about $300 million of the IPO stock in total, they said.
The unit of China Huaneng Group Corp. is seeking to raise as much as $1 billion after cutting the size of the IPO by about 20 percent, the people said. Huaneng Renewables plans to sell about 2.5 billion shares at as much as HK$3.09 (40 cents) apiece, they said.
Xinjiang Goldwind Science & Technology Co., another key investor, plans to subscribe to as much as $15 million worth of shares in the offering, the Urumqi-based company said in a statement to the Shenzhen Stock Exchange yesterday.
Beijing-based Huaneng Renewables scrapped an earlier IPO plan because of unexpected and excessive market volatility, the company said on Dec. 13. In the earlier attempt, it offered about 2.5 billion shares at as much as HK$3.98 each, according to the prospectus for the sale.
Morgan Stanley, China International Capital Corp. and Macquarie Group Ltd. are managing the IPO for Huaneng Renewables, which plans to start trading in early June, the people said. Hu Xiaoyu, a director at China Huaneng Group’s news office in Beijing, declined to comment. Two phone calls to GE’s U.S. media inquiry line outside regular business hours went unanswered.
China Datang Corp. Renewable Power Co., the wind unit of the nation’s second-largest power producer, raised HK$5 billion in a Hong Kong IPO in December. The shares have since lost 1.7 percent. The stock closed at HK$2.29 today.
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