Firm draws Silk Road, GE to $2 bil­lion IPO

China Daily (Canada) - - BUSINESS - By BLOOMBERG

China En­ergy Engi­neer­ing Corp, a State- owned­builder of power plants, and an ex­ist­ing in­vestor is seek­ing as much as $2 bil­lion from a Hong Kong ini­tial pub­lic offering.

The Beijing-based com­pany and the Na­tional Coun­cil for So­cial Se­cu­rity Fund are offering 8.8 bil­lion shares at HK$1.59 (20 cents) to HK$1.73 apiece, ac­cord­ing to terms for the deal ob­tained by Bloomberg. New shares ac­count for about 90.9 per­cent of the sale. Twenty cor­ner­stone in­vestors, in­clud­ing China’s Silk Road Fund and Gen­eral Elec­tric Co, agreed to buy a com­bined $1.27 bil­lion of stock in the offering, the terms show.

Hong Kong IPO fundrais­ing is set to rise to a five-year high this year as Chi­nese Sta­te­owned en­ter­prises seek listings. Ini­tial of­fer­ings in the city have raised $28 bil­lion in 2015, up from $18 bil­lion the same pe­riod a year ear­lier, data com­piled by Bloomberg show.

Silk Road Fund agreed to buy $300 mil­lion of stock as a cor­ner­stone in­vestor in the China En­ergy Engi­neer­ing IPO, while State Grid Corp of China will in­vest $200 mil­lion, the terms show. Chi­naGen­eral Nu­clear Power Corp and China XD Group each com­mit­ted $50 mil­lion, while Gen­eral Elec­tric will in­vest $15 mil­lion.

The com­pany plans to set a fi­nal price for the IPO on Dec 2 and start trad­ing Dec 10. China In­ter­na­tional Cap­i­tal Corp and CITIC CLSA Cap­i­tal Mar­kets Ltd are joint spon­sors of the deal.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.