Isra-Mart srl:China Huaneng Group prepares $1bn green energy IPO

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Isra-Mart srl news:

China Huaneng Group, the country's largest electricity producer, has applied for an initial public offering (IPO) for its alternative energy unit in Hong Kong that could raise up to $1bn (£621m) to accelerate the expansion of the company.

According to Bloomberg reports citing two anonymous sources, the Huaneng unit has hired Morgan Stanley, Goldman Sachs and Macquarie to manage the $1bn sale.

The Hong Kong Stock Exchange is expected to hold a listing hearing this week, and the company is aiming to start trading as early as next month.

China Daily also confirmed the report, citing two independent sources.

Reports of the planned IPO have been circulating all year, but spokespeople for all parties concerned have consistently refused to confirm or deny them.

A number of renewable energy firms have had to postpone or cancel green IPOs in recent months, citing weak market conditions, and many market observers thought China Huaneng may also have delayed its plans after rumours of activity fell silent.

But the fresh reports suggest that the IPO may now be completed before the end of the year.

The revived offering is expected to fund the continued expansion of Huaneng Group's wind energy subsidiary as it seeks to tap into China's booming renewable energy market, which according to the Global Wind Energy Council is far and away the fastest growing in the world.

The subsidiary plans to have 20,000MW of wind power installed by 2020, or about 10 per cent of China Huaneng's total estimated generating capacity.

State-owned China Datang, the nation's second-largest power producer, is also reportedly seeking to revive a $1bn IPO in Hong Kong for its renewable energy unit, after similar delays from a planned offering earlier this year.

Reports on Bloomberg and Reuters earlier this month suggested the offering will be made before the end of the year.

Credit Suisse and UBS are among those said to be handling China Datang's IPO.