Sinovel will issue 100 million general public shares, valuing 10 percent of its gross assets, to collect about CHY 3.5 billion yuan, according to the Dalian State-owned Assets Administration Committee (DSAAC) on March 1. Sinovel was unable to comment.
The cpmpany is the largest high-tech enterprise dedicated to developing, designing, producing and selling large-scale wind turbines in China.
According to reports, the application will be filed this month with the IPO set to be launched in October. Dalian Heavy Industries, with a 20% holding, will remain the Sinovel's biggest shareholder.
In 2009 Sinovel announced it had begun cooperating with wind power developers across the world as part of a long-term global marketing strategy. In January it started production of a 5MW turbine at its factory in Jiangsu and in December launched its first 3MW turbine.
The company said it aims to create extensive overseas marketing channels and has held discussions with partners to construct manufacturing bases and research and development centres overseas. The company aims for overseas sales to eventually account for 30-40% of total revenue.
The other two players in China's wind energy sector – Goldwind and China Huaneng Group, are poised to launch flotation plans in a bid to ramp up capacity and move into overseas markets.
Goldwind has confirmed that it wants to be listed on the Hong Kong stock exchange after a shareholders meeting in September 2009 endorsed the issue of shares to the value of CNY247 million ($36 million).
The shares will not exceed 15% of Goldwind's stock equities.Goldwind is already listed on China's Shenzhen stock exchange. It is worth CNY28.78 billion (US$4.2 billion).
Meanwhile, Huaneng has confirmed that it is also planning to list its wind power unit on the stock exchange.
A company official for Huaneng New Energy, responsible for the group's renewables business, refused to confirm on which stock exchange it intends to float, but earlier media reports suggested that it could be Hong Kong in a share issue worth US$1-1.5 billion.