Friday, December 4, 2009

Wind: "Longyuan Said to Raise $2.3 Billion in Wind Power IPO " Oversubscribed 10-fold, Wilbur Ross Takes a Flyer (916:HK)

Talk about riding the zephyr of the Chinese markets. From Bloomberg:
China Longyuan Power Group Corp., the nation’s largest wind-power producer, raised HK$17.5 billion ($2.26 billion) in the world’s third-biggest initial public offering by an alternative energy company.

Longyuan sold 2.14 billion shares at HK$8.16 apiece, the top end of a range marketed to investors, said the people, declining to be identified before an official announcement.

China WindPower Group Ltd. and China Solar Energy Holdings Ltd. have more than tripled in Hong Kong trading this year as the Chinese government encourages the use of cleaner, renewable energy sources. China’s wind-power capacity will increase more than fivefold in the next decade, Zhang Guobao, head of the government’s National Energy Administration, said on May 26.

“This issue has seen good interest and is very topical, hence the demand and pricing,” said Andrew Sullivan, a sales trader at Mainfirst Securities Hong Kong Ltd.

International institutions ordered about $28 billion of shares at the final price, or more than 10 times the amount reserved for them, said one of the people. Hong Kong investors sought 233 times the number of shares reserved for them, the people said.

China Investment Corp., the nation’s sovereign wealth fund, earlier agreed to buy $400 million of shares in the IPO. The share sale also attracted $100 million from WL Ross & Co. LLC, controlled by U.S. billionaire Wilbur Ross....MORE