China Nuclear Engineering Rises by Daily Limit in Shanghai Debutby
Shares jump 44% in Shanghai, triggering trading suspension
Company sold more than 500 million of its shares during IPO
China Nuclear Engineering Group Co. rose by the daily trading limit in its Shanghai debut as a shift by the world’s largest energy consumer towards cleaner power generation is expected to expand its business.
The state-owned nuclear power project developer jumped by 44 percent to 5 yuan ($0.76) a share from its initial public offering price of its 3.47 yuan. Trading was temporarily suspended. The company sold more than 500 million shares in the IPO, raising 1.82 billion yuan, it said in a statement May 24.
“China Nuclear Engineering obviously is strong in technology and project execution and has little competition in China’s market,” Shi Yan, a Shanghai-based analyst at UOB-Kay Hian Holdings Ltd., said by phone. “Growth potential is also something attractive to investors, as China has made it a national priority to develop nuclear power plants.”
China Nuclear Engineering’s listing follows China National Nuclear Power Co., the country’s second-biggest atomic project operator, which raised 13.2 billion yuan in an IPO last year. China aims to build as many as eight plants each year from 2016 to 2020 as President Xi Jinping’s government seeks to replace coal-fired capacity with cleaner options. The country has more plants planned, proposed and under construction than any other nation.
China Nuclear Engineering is involved in all of the country’s nuclear power plants currently in operation and under construction, according to the company’s website.