Announcement
China Resources New Energy, the renewable‑energy division of China Resources Power (HK:0836), filed a prospectus indicating its intention to raise approximately 24.5 billion yuan, equivalent to US$3.62 billion, through an initial public offering on the Shenzhen Stock Exchange.
Offering Details
The company will offer about 2.1 billion shares, which will represent roughly 16.2 % of its enlarged share capital, not counting any overallotment option. Price consultations are scheduled to begin on 16 June, with the subscription window opening on 22 June. Strategic investors are slated to purchase half of the shares on offer, while the remaining half will be allocated between institutional and retail investors on an initial 70 %‑30 % split.
Use of Proceeds
The proceeds are earmarked to finance roughly 24.5 billion yuan of a broader 40.4 billion yuan investment programme aimed at expanding wind‑farm and photovoltaic power‑plant capacity across China.
Recent Financial Performance
According to the prospectus, the company recorded a first‑quarter net profit of 1.62 billion yuan, a decline of 31.1 % year‑on‑year, while revenue fell 2.8 % to 6.21 billion yuan. The downturn was attributed to adverse weather conditions, tighter grid restrictions on power generation, and reduced subsidies for certain plants.
Market Reaction and Sponsors
Shares of the parent, China Resources Power, slipped 1.68 % in Hong Kong trading on the day of the announcement. China International Capital Corp and Citic Securities have been appointed as joint sponsors for the offering.