Huaneng Renewables to Raise $204 Million From Share Placement
Huaneng Renewables Corp. (958), a Chinese wind-farm operator, plans to raise HK$1.58 billion ($204 million) from a share sale.
The company will issue about 582.3 million shares at HK$2.71 apiece, according to a Hong Kong stock exchange filing. Net proceeds, excluding fees, will be HK$1.55 billion.
The placement price is 7.5 percent lower than the closing price on Oct. 11. Credit Suisse (Hong Kong) Ltd. is the sole share sale manager.
Huaneng Renewables joins China Longyuan Power Group Corp. (916), the nation’s biggest wind project developer, in issuing equity. China Longyuan raised HK$2.91 billion from a share placement in December. Huaneng Renewables’ sale will account for about 16.7 percent of its H shares after completion, the company said.
The sale is “far lower in terms of dilution” and “far higher in terms of the issuance price” than expected, analysts led by Michael Parker at Sanford C. Bernstein & Co. wrote in a note to clients today.
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