The company will issue 1.5 billion new shares at HK1.60-1.76 per share. It will invest 40% of the raised funds in clean energy projects including hydropower, wind power and nuclear power projects.
30% of the raised funds will be used to buy wind and gas turbines. 20% will be used to repay short-term debts and 10% will be kept as operating funds.
Bank of America Merrill Lynch, Citic Securities International Co. and UBS AG serve as the joint global coordinators and co-sponsors for the IPO.
The company has pulled six investors to buy $209 million of shares, 61% of the target. The six investors are Sinovel ($58.8 million), CSR Zhuzhou Locomotive ($50 million), Huaneng Renewables ($30 million), State Grid International Development ($30 million), Shanxi Lu’an Mining ($30 million), and GE Pacific ($10 million).
Additionally, Shanghai Electric said it will buy no more than $10 million shares.
Huadian Fuxin Energy is China’s fifth largest wind power developer, with 2.17GW installed capacity as of end-2011.
China’s other leading state-owned power companies, Longyuan Power, Datang Renewables and Huaneng Renewables, have also floated their shares in Hong Kong Stock Exchange.