China General Nuclear Power Group (CGN Power), China's mainland biggest nuclear energy company by installed capacity, has raised HK$23.8 billion (US$3.07 million) through an initial public offering (IPO).
The 8.82 billion new shares were 287.3 times oversubscribed and were priced at HK$ 2.78 each.
The IPO comes ahead of a published merger between CGN and China National Nuclear Corporation (CNNC) as part of an overall restructuring of the mainland’s state-run nuclear industry.
Eighteen cornerstone investors, including US hedge fund Och-Ziff Capital Management, Singapore sovereign wealth fund GIC Pte Ltd, Asia's biggest hedge fund Hillhouse Capital and Minmetals Capital, hold a combined 42.1 per cent of CGN’s issued shares.
ABC International, Bank of America Merrill Lynch and China International Capital Corp (CICC) were hired as sponsors of the IPO. BNP Paribas, CLSA, Goldman Sachs, ICBC International and Morgan Stanley acted as joint global coordinators of the IPO.
CGN has operating nuclear plants at Daya Bay Nuclear Power Plant, Ling Ao Nuclear Power Plant, Hongyanhe Nuclear Power Plant andNingde Nuclear Power Plant, with five new nuclear power stations under construction and another 2 planned.
CGN operates in other emerging energy industries like wind energy and solar energy, as well as more traditional industries like hydroelectricity. As of 2014 CGN operates power generation plant of the capacity: nuclear 8.3 GW, wind 4.7 GW, hydro 4.0 GW and solar 600 MW.