China

China

Longyuan funds domestic expansion with 1.3bn share offer

CHINA: China's largest developer Longyuan Power will issue up to 1.355 billion new 'H' shares to further develop its renewable energy generation business.

The first turbines being installed at Longyuan's offshore project at Rudong, Jiangsu-province, east China
The first turbines being installed at Longyuan's offshore project at Rudong, Jiangsu-province, east China

Longyuan Power said the new H Shares to be issued represent just under 50% of the issued 2.7 billion H Shares issued as at 11 May 2012. In total it has issued 7.46 billion shares.  H shares are traded on the Hong Kong Stock Exchange and available to overseas investors.

The new shares are to be issued with a nominal value of CNY 1.00 each to institutional buyers.

The raised proceeds will be used to fund its new renewable energy power generation projects, with the bulk of the money being spent on the wind power sector.

Longyuan Power intends to spend half of the net proceeds on Chinese onshore wind power generation projects. 20% of the money will go to offshore wind power generation projects.

15% in overseas wind power and solar power generation projects. 5% will go towards solar power generation projects in the country. The remainder will go towards working capital.

In 2011, Longyuan Power had CNY 2.638 billion net profits, up 31% on 2010. It has installed 8.598GW wind turbines installed by the end of March, up 35.4% on 2010.

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