CR Power Picks Banks for Renewable Unit’s Hong Kong Listing – EQ Mag Pro

The renewable energy arm of China Resources Power Holdings Co. has picked banks including ABC International Holdings Ltd. and China International Capital Corp. for an initial public offering in Hong Kong, according to people familiar with the matter.

The power generation company’s unit is also working with HSBC Holdings Plc and Morgan Stanley on a proposed first-time share sale that could take place as soon as mid-2022, the people said. The IPO could raise about $1 billion to $2 billion, the people said, asking not to be identified as the information is private.

Deliberations are ongoing and details such as the fundraising amount and timing could still change, the people said. Representatives for CICC, HSBC and Morgan Stanley declined to comment, while ABC International didn’t immediately respond to requests for comment. Calls and emails to China Resources Power made outside normal business hours were not immediately answered.

A subsidiary of China Resources Holdings Co., the state-owned conglomerate, China Resources Power was listed in Hong Kong in 2003. Its businesses include coal power as well as renewable power sources such as wind, thermal, hydro, photovoltaic and others, according to its website. The company has pledged to increase and prioritize investments in wind and thermal power, the website shows.

For the first half of 2021, China Resources Power reported net income of HK$5.1 billion ($654 million), an increase of nearly 13% compared to the same period the year before, according to a statement.

China Resources Power warned on Feb. 10 that its full year net income for 2021 could fall between 70% and 80% from the previous year, due to a significant increase in fuel costs, mainly from coal, according to an exchange statement. Its shares have declined 29% in the year to date, giving the company a market value of about $11.4 billion.

Source: Bloomberg