Daniel Ren in Shanghai
29 September 2011, South China Morning Post
Sinohydro Group, the mainland's largest builder of dams, set its initial
public offering price at the bottom end of the range to raise 13.5
billion yuan (HK$16.46 billion), 22 per cent less than originally targeted.
The company, which has built about two-thirds of the mainland's domestic
hydropower projects, offered three billion shares in the mainland's
largest listing so far this year. It had planned to offer 3.5 billion
shares,seeking 17.3 billion yuan.
According to a statement, Sinohydro's shares will be priced at 4.5 yuan
each, the bottom end of its indicative range of 4.5 yuan to 4.8 yuan.
The company said the price had been decided after taking into
consideration Sinohydro's fundamentals, investors' response and market
sentiment. The shares will be listed on the Shanghai Stock Exchange.
On the mainland, it is rare for a company to price a share offer at the
lowest end. In the past two decades, most A-share listings have been
offered at the top end of indicative ranges.
Sinohydro reserved 1.5 billion shares for institutional and corporate
investors. They were 1.75 times oversubscribed while retail investors
ordered 10 times more than the allotted 1.5 billion shares on Tuesday,
the statement said.
Sinohydro slashed the size of its offering at the weekend after a 15 per
cent fall in the market so far this year. The offer proceeds will be
used to upgrade machinery and for project funding.
Analysts expected the company to raise up to 14.4 billion yuan by
offering the shares at the top end.
However, investors showed a lukewarm response to the builder of Three
Gorges Dam.
There was even talk during intraday trading yesterday that the offer
would be viewed as a failure.
On Monday, Sinohydro chairman Fan Jixiang said the company would
consider a listing in Hong Kong when the timing was right and seek bank
loans to support new projects.
***
China splits power industry, launches two new SOEs to boost reform
29 September 2011
Xinhua's China Economic Information Service
BEIJING, Sept. 29 (Xinhua) -- China's state-owned assets watchdog on
Thursday announced the completion of restructuring of its bloated
electricity industry, breaking up the design and construction businesses
from power grids and firms and establishing two new companies.
The two new firms, PowerCorp China and China Energy Engineering Group
Co. Ltd. (CEEG), are both solely funded by the state, according to the
State-owned Assets Supervision and Administration Commission (SASAC).
The separation of auxiliary businesses from the nation's power grids and
power generating companies was part of the country's efforts to reform
the power industry as formulated by the State Council in 2002, said Wang
Yong, head of SASAC.
"This marks a major step forward in the country's economic restructuring
this year," Wang said at the launching ceremony of the two new state
companies.
After the restructuring, the state-owned Sinohydro Corporation,
HydroChina Corporation, together with the design and construction units
previously affiliated with the State Grid and the China Southern Power
Gird in Shanghai, Hebei, Jilin and 11 other regions, will merge into
PowerCorp, with assets totaling 196 billion yuan (30.63 billion U.S.
dollars) and 202,700 employees.
Meanwhile, CEEG has taken over the other two state-owned enterprises,
the China Gezhouba (Group) Corporation and the China Power Engineering
Consulting Group Corporation, along with auxiliary units previously
operated by the State Grid and the China Southern Power Gird in Beijing,
Tianjin, Shanxi and 13 other provinces or regions.
CEEG has assets totaling 120 billion yuan and 160,000 staff.
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