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Sinohydro seeks new project finance
Source: Bloomberg News |
01:45 UTC+8 September 20, 2011
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Print Edition
Print Edition
SINOHYDRO Group, seeking to fund 17.3 billion yuan (US$2.7 billion) of projects, will start selling shares next week in what may be the biggest initial public offering on Chinese mainland in more than a year.
China's biggest builder of dams will start selling as many as 3.5 billion shares in Shanghai from next Monday, the Beijing-based company said yesterday. The shares will be priced on September 23, it said.
Sinohydro is expanding overseas and in China, where it is building hydro-electric stations and wind farms as part of the government's push to reduce reliance on coal.
The sale comes at a time when the Shanghai Composite Index has declined 13 percent this year amid higher interest rates and a global economic slowdown.
Zhou Rong, an investment manager at adviser Shanghai Great Wisdom, said: "Such a large listing in a weak market will be a blow to investor sentiment."
Sinohydro's initial offering would be the biggest since China Everbright Bank raised 18.9 billion yuan in Shanghai in August last year. The exercise of Everbright's over-allotment option increased the amount it raised to 21.1 billion yuan.
Institutional investors can buy the shares from next Monday. Subscription for retail investors opens the following day. The China Securities Regulatory Commission approved the IPO application on July 29.
Sinohydro's net income gained 27 percent last year to 2.91 billion yuan on increased demand for hydro-power facilities.
The company had 261 projects under construction in 55 countries at the end of last year, with overseas projects accounting for 26 percent of the company's revenue and 35 percent of gross profit.
China's biggest builder of dams will start selling as many as 3.5 billion shares in Shanghai from next Monday, the Beijing-based company said yesterday. The shares will be priced on September 23, it said.
Sinohydro is expanding overseas and in China, where it is building hydro-electric stations and wind farms as part of the government's push to reduce reliance on coal.
The sale comes at a time when the Shanghai Composite Index has declined 13 percent this year amid higher interest rates and a global economic slowdown.
Zhou Rong, an investment manager at adviser Shanghai Great Wisdom, said: "Such a large listing in a weak market will be a blow to investor sentiment."
Sinohydro's initial offering would be the biggest since China Everbright Bank raised 18.9 billion yuan in Shanghai in August last year. The exercise of Everbright's over-allotment option increased the amount it raised to 21.1 billion yuan.
Institutional investors can buy the shares from next Monday. Subscription for retail investors opens the following day. The China Securities Regulatory Commission approved the IPO application on July 29.
Sinohydro's net income gained 27 percent last year to 2.91 billion yuan on increased demand for hydro-power facilities.
The company had 261 projects under construction in 55 countries at the end of last year, with overseas projects accounting for 26 percent of the company's revenue and 35 percent of gross profit.
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