Huaneng Renewables Corp plans to raise share sale
Wind farm operator from China, Huaneng Renewables Corp, is planning to raise HKD1.58 billion or USD204 million from a sale of its shares of stock. The company would be issuing nearly 582.3 million shares at HKD2.71 per share, according to documents filed with the HK bourse. Overall, the net proceeds, excluding fees, is valued at HKD1.55 billion.
The said price is 7.5% lower than the October 11 price. The sole share sale manager is Credit Suisse (Hong Kong) Ltd.
Huaneng would be joining China Longyuan Power Group Corp, China's largest wind project developer in issuing equity. China Longyuan had raised HKD2.91 billion from a share placement last December. The sale of Huaneng Renewables would account for nearly 16.7% of its H shares after its completion, according to the company.
The said share sale is 'far lower in terms of dilution' and 'far higher in terms of the issuance price' than expected, according to analysts such as Michael Parker of Sanford C. Bernstein & Co, who wrote in a note to clients today.