China General Nuclear Power Releases USD2.2 Billion Shenzhen IPO Plan
Tang Shihua
DATE:  Jul 31 2019
/ SOURCE:  yicai
China General Nuclear Power Releases USD2.2 Billion Shenzhen IPO Plan China General Nuclear Power Releases USD2.2 Billion Shenzhen IPO Plan

(Yicai Global) July 31 -- China General Nuclear Power released the prospectus for its listing on the Shenzhen Stock Exchange yesterday.

The nuclear power giant will issue just over 5 billion shares to raise CNY15 billion (USD2.2 billion) and top the list for financing amount of an initial public offering by a mainland Chinese firm this year.

The Shenzhen-based company will use the proceeds to build the No. 5 and No. 6 nuclear power units in Yangjiang, Guangdong province and No. 3 and No. 4 nuclear power units in Fangchenggang in southwestern Guangxi province to supplement its working capital, per the prospectus.

The No. 3 and No. 4 reactors are third-generation units CGN Power and another nuclear energy giant China National Nuclear jointly developed based on technology to which they have full proprietary intellectual property rights. Both reactors have a capacity of 1,180 megawatts and are slated to finish construction and go into operation in 2022, public data show.

The new shares, which make up around one-tenth of the firm's total, will be issued by a combination of strategic placement and offline and online issuance, with the preliminary inquiry date set for Aug. 6, the firm announced, adding the issuer and the joint lead underwriter will directly decide the issue price via this offline price inquiry.

CGN Power forecasts CNY26.0 billion to CNY27.0 billion in operating revenue from January to June, up between 13.1 percent and 17.5 percent, around CNY4.8 billion to CNY5.2 billion in net profit, up between 5.2 percent and 13.9 percent, the prospectus states.

CGN Power went public in Hong Kong in December 2014 and rumors of its pending listing on China's A-share market of domestic stocks have swirled ever since. The firm's board approved its mainland IPO plan in February last year, and the regulator gave the nod in July.

Editor: Ben Armour

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Keywords:   China China General Nuclear Power ,IPO