China Huaneng Group, the nation’s largest electricity producer, has applied for an initial public offering (IPO) for its alternative energy unit in Hong Kong.
According to Bloomberg, Huaneng has hired Morgan Stanley, Goldman Sachs and Macquarie to manage the $1bn sale. The Hong Kong stock exchange will hold a listing hearing this week, and the company aims to start trading next month.
China, the world’s largest polluter, is encouraging cleaner energy to combat climate change and to meet demand for power in the fastest-growing major economy. China erected more wind turbines in 2009 than any other country and may install a record 18 GW of wind power capacity this year, Bloomberg New Energy Finance estimates show.
China plans to require power network companies to buy a portion of electricity supplies from renewable energy sources. Renewable energy is one of seven “strategic” emerging industries that China aims to promote in the next five years.
China Huaneng is the state-controlled parent of Hong Kong-listed Huaneng Power International Inc. China Huaneng plans to have 20 GW of wind power capacity by 2020, or about 10 per cent of its total estimated generating capacity by then.
China Datang., the nation’s second-largest power producer, is also seeking a $1bn IPO in Hong Kong for its renewable energy unit. A listing hearing will be held for China Datang Corp. Renewable Power Co. this month.