The renewables unit of China Three Gorges Corporation has just received approval to list shares on the Shanghai stock exchange in what could become the biggest initial public offering (IPO) in China if it happens this year, according to Bloomberg data.
Last week, the China Securities Regulatory Commission approved applications for IPOs from three companies, including the one from China Three Gorges Renewables (Group) Co., Ltd.
The unit, part of the largest hydropower producer China Three Gorges Corporation, announced last year its intention to raise as much as US$3.85 billion (25 billion Chinese yuan) in Shanghai.
China Three Gorges Renewables has filed a prospectus with the Shanghai Stock Exchange, saying it plans to sell as much as 8.57 billion shares, but did not specify how much money it looks to raise, Bloomberg reports.
According to data compiled by Bloomberg, a 2021 initial public offering from China Three Gorges Renewables could make it the biggest share sale in the country this year if the US$3.85 billion funds-raising goal from last year is any indication.
The assets of the renewables unit of China Three Gorges mostly include solar farms, wind power plants, and small hydropower plants. All those assets are valued at over US$21.6 billion (140 billion yuan), according to Bloomberg.
A large IPO of a renewables business would be good for China’s image as it has pledged to become carbon neutral by 2060 and see its emissions peak this decade. China is breaking solar and wind power installation records, but it is also single-handedly leading the increase in the world’s coal-fired capacity fleet.
China installed 52 gigawatts (GW) of wind power capacity last year, breaking the world record for most wind capacity installed in a single year by any country in history as it doubled its annual installations compared to 2019, the Global Wind Energy Council (GWEC) said last month.
At the same time, a report led by Global Energy Monitor (GEM) found that China—the world’s biggest carbon emitter—commissioned more coal-fired capacity last year than the rest of the world retired.
By Charles Kennedy for Oilprice.com
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