China National Nuclear Power Corp. (CNNPC) is planning to raise as much as US$2.16 billion in the country’s largest domestic initial public offering in five years.
CNNPC, one of the top two state nuclear power operators, will sell up to 3.89 billion new shares, or a quarter of the stock, according to a filing to the Shanghai Stock Exchange on Monday.
The stock is expected make its debut on June 2, the Wall Street Journal reported Tuesday.
The share float is poised to be the largest in the domestic market since China Everbright Bank Co. raised US$2.6 billion in Shanghai in August 2010, according to data provided by Dealogic.
China National Nuclear Group holds a 97 percent stake in CNNPC.
About 40 percent of China’s nuclear energy is generated by operators controlled by CNNPC.
After stripping out issuance-related fees, the company will raise 13.4 billion yuan (US$2.16 billion), according to the prospectus.
CNNPC will allocate 4.18 billion yuan of the proceeds to replenish its cash holding and will invest the rest in projects in Fujian, Zhejiang, Hainan and Jiangsu provinces.
Citic Securities, UBS A.G. and China Securities are the underwriters for the deal.
The China Securities Regulatory Commission approved the listing, along with those of 22 other companies on Friday.
Meanwhile, China Nuclear Engineering Corp. plans to raise 2.7 billion yuan by issuing up to 525 million shares, according to a preliminary prospectus released Friday on the securities regulator’s website.
Those planned offerings follow a successful listing in Hong Kong by China’s other dominant nuclear power operator, China General Nuclear Power Group, which raised US$3.16 billion in December.
– Contact us at [email protected]