CGN Power Said to Secure Approval for $3 Billion Hong Kong IPOFox Hu
CGN Power Co., China’s biggest producer of nuclear energy, won approval from the Hong Kong stock exchange for an initial public offering that could raise as much as $3 billion, people with knowledge of the matter said.
The Shenzhen-based company will start gauging investor demand for the share sale as soon as next week, said the people, who asked not to be identified as the information is private.
CGN Power is building new stations in China as the government fights pollution by curbing coal use in favor of cleaner energy sources. China National Nuclear Power Co., the country’s second-biggest producer, plans to seek about $2.6 billion in a Shanghai IPO, according to a May 4 filing.
China plans to add 8.6 gigawatts of nuclear power capacity this year, the National Energy Administration said in a Jan. 20 statement. A Hong Kong-based external spokesman declined to comment.
CGN Power will use half of the IPO proceeds to increase its stake in the Taishan nuclear power project and another 27.5 percent of the money to build new stations, according to a Sept. 3 filing. ABCI Securities Co., Bank of America Corp. and China International Capital Corp. are joint sponsors of the IPO, the filing shows.