CGN Power 1816

CGN Power 1816

Postby winston » Fri Nov 28, 2014 6:19 am

Applied for the IPO

Nuclear firm shows power

Mainland nuclear energy producer CGN Power won commitments from GIC and Och-Ziff Capital Management Group to invest in its HK$23.4 billion initial public offering, people with knowledge of the matter said.

GIC, Singapore's sovereign wealth fund, agreed to buy about HK$780 million of stock in the company's Hong Kong share sale.

Hong Kong power provider CLP Holdings (0002) has also committed to invest in the IPO, along with China Reinsurance (Group) and China Cinda Asset Management, they said.

CGN Power, the nation's biggest producer of nuclear energy, is building new stations in China as the government fights pollution by curbing coal use in favor of cleaner electricity sources. The country plans to add 8.6 gigawatts of nuclear power capacity this year, the National Energy Administration said.

The Shenzhen-based company plans to set aside about HK$9.36 billion of shares for so-called cornerstone investors, who typically agree to hold on to their stock for six months in return for guaranteed IPO allocation\.

China Life Insurance (2628), China Development Bank and China Minmetals Corp also agreed to buy shares in the offering.

CGN Power will use some of the IPO proceeds to increase its stake in the Taishan nuclear power project and build new stations, according to a November 16 filing.

Source: The Standard HK
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Re: CGN Power

Postby winston » Tue Dec 02, 2014 6:30 am

Nuclear giant to end year with bang

CGN Power's retail tranche may freeze up to HK$300 billion, topping all share offerings so far this year.

China's largest nuclear power generator stopped taking margin orders yesterday for its planned HK$24.52 billion float, and is due to shut its retail book today.

It received HK$82.64 billion worth of margin orders from 10 brokers, making its retail tranche 66 times oversubscribed.

Investors are expected to be assigned one board lot of 1,000 shares for subscribing to five or six board lots.

Source: The Standard HK
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Re: CGN Power

Postby winston » Wed Dec 03, 2014 6:05 am

The retail tranche of Guangdong-based CGN Power was 286 times oversubscribed, freezing HK$350 billion, the eighth highest in history.

Fewer than 200,000 investors subscribed to this offering, suggesting many applied for a large chunk of shares.

Source: The Standard HK
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Re: CGN Power

Postby winston » Wed Dec 03, 2014 10:22 am

UPDATE 1-China's CGN Power prices Hong Kong IPO at top of range, raises $3.2 bln -IFR

* IPO priced at HK$2.78 per share, debut due Dec 10
* To use funds to increase nuclear power capacity (Adds cornerstone investors, use of proceeds, underwriters)

HONG KONG, Dec 3 (Reuters) - CGN Power Co Ltd, China's largest nuclear power producer, raised $3.2 billion after pricing its Hong Kong initial public offering at the top of expectations amid a scramble to invest in a sector primed for growth as Beijing promotes atomic energy.

The 8.82 billion new shares on offer were priced at HK$2.78 each after being marketed in an indicative range of HK$2.43 to HK$2.78, Thomson Reuters publication IFR reported on Wednesday, citing people familiar with the plans.

That would value the offering at HK$24.52 billion ($3.16 billion), the second-largest in the Asia-Pacific region so far this year. A listing by Chinese property developer Dalian Wanda Commercial Properties Co, expected later this month, could be worth up to $6 billion. [ID:nL3N0TD0O4] [ID:nL3N0TL3OK]

As a nuclear energy provider, CGN Power is set to benefit from China's efforts to curb environmental pollution by diversifying its energy generation away from fossil fuels. In a draft IPO prospectus, it said it plans to use proceeds partly to expand installed capacity with nine new power generating units.

CGN Power wasn't immediately available for comment on the IPO's pricing. Its debut on the Hong Kong stock exchange is set for Dec. 10.

The company received commitments worth $1.33 billion from 18 'cornerstone' investors, helping secure demand for the deal before it was launched to retail and other institutional buyers.

Cornerstone investors receive a guaranteed allocation in exchange for agreeing to retain their stakes for a set period.

Among cornerstone investors are hedge fund Och-Ziff Capital Management Group LLC , Singapore sovereign wealth fund GIC Pte Ltd and Asia's biggest hedge fund Hillhouse Capital. Each of these three put $100 million into the IPO.

ABC International, Bank of America Merrill Lynch and China International Capital Corp (CICC) were hired as sponsors of the IPO, with BNP Paribas, CLSA, Goldman Sachs, ICBC International and Morgan Stanley also acting as joint global coordinators.

Source: Reuters
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Re: CGN Power

Postby winston » Wed Dec 03, 2014 3:04 pm

China's CGN Power prices Hong Kong IPO at top of range

HONG KONG: CGN Power Co Ltd, China's largest nuclear power producer, raised $3.2 billion after pricing its Hong Kong initial public offering at the top of expectations, amid a scramble to invest in a sector primed for growth as Beijing promotes atomic energy.

The 8.82 billion new shares on offer were priced at HK$2.78 each after being marketed in an indicative range of HK$2.43 to HK$2.78, Thomson Reuters publication IFR reported on Wednesday, citing people familiar with the plans.

That would value the offering at HK$24.52 billion ($3.16 billion), the second-largest in the Asia-Pacific region so far this year. A listing by Chinese property developer Dalian Wanda Commercial Properties Co Ltd <IPO-DWC.SS>, expected later this month, could be worth up to $6 billion.

As a nuclear energy provider, CGN Power is set to benefit from China's efforts to curb environmental pollution by diversifying its energy generation away from fossil fuels. In a draft IPO prospectus, it said it plans to use proceeds partly to expand installed capacity with nine new power generating units.

CGN Power said it expects China's installed capacity for nuclear power to surge to 128 gigawatts (GW) by 2030 from 16 GW in 2013. The company sees its own output more than doubling to 24,970 megawatts (MW) by 2019 from 11,624 MW in 2014.

"China pollution is very serious today and nuclear power may become a main source of energy in the future to help lower the pollution," said Jasper Chan, corporate finance officer at Hong Kong brokerage Phillip Securities.

CGN Power's investor relations department didn't respond to an e-mailed request for comment on the IPO's pricing.

The company received commitments worth $1.33 billion from 18 'cornerstone' investors, helping secure demand for the deal before it was launched to retail and other institutional buyers. The shares debut in Hong Kong on Dec. 10.

The CGN deal comes ahead of Dalian Wanda and a planned IPO of up to $1.5 billion from BAIC Motor Corp Ltd <IPO-BAC.SS>, part-owned by Germany's Daimler AG, before the end of the year. Equity markets should benefit from increased investment flows after China's central bank cut interest rates last month to spur the economy.

"Lower rates in China help," Chan said. "More hot money will flow into Hong Kong and that helps the market."

Source: Reuters
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Re: CGN Power

Postby winston » Wed Dec 03, 2014 5:17 pm

CGN Power Said Poised to Raise $3.2 Billion in Hong Kong IPO

CGN Power Co., seeking to become China’s first listed nuclear energy producer, is set to raise about $3.2 billion in Hong Kong’s biggest initial public offering in two years, people with knowledge of the matter said.

China’s largest nuclear power generator plans to sell 8.83 billion shares at HK$2.78 apiece, the top end of a marketed range, according to the people. It may later use an overallotment option to increase the deal size to about $3.6 billion, they said, asking not to be identified as the information is private.

CGN Power is drawing investor interest as China favors cleaner energy sources following a landmark deal with the U.S. to cut emissions. It joins BAIC Motor Corp. and Dalian Wanda Commercial Properties Co. (1068366D) in selling shares this month, which could bring Hong Kong IPO proceeds for the year to the highest since 2010, according to data compiled by Bloomberg.

“It’s crystal clear that China will speed up the installation of nuclear power generators to replace polluting resources such as coal,” said Kevin Zhao, a Shanghai-based analyst at UOB-Kay Hian Holdings Ltd. “CGN Power has everything it needs to achieve steady and fast growth in many years to come, and its profit margin should be much better than traditional power generators.”

The Shenzhen-based electricity producer is due to set the price later today and no final decision has been made, the people said. A Hong Kong-based external spokeswoman declined to comment.

Cornerstone Investors

The sale is the biggest IPO in Hong Kong since People’s Insurance Co. (Group) of China Ltd. raised $3.6 billion in December 2012, according to data compiled by Bloomberg. CGN Power, which offered the shares at HK$2.43 to HK$2.78 each, aims to start trading on Dec. 10, its prospectus shows.

The top end of the price range values CGN Power at 17.4 times this year’s estimated earnings, data compiled by Bloomberg show. Producers of alternative energy globally trade at a median 19.8 times earnings, according to the data.

A total of 18 cornerstone investors agreed to buy about $1.33 billion of stock, according to CGN Power’s prospectus. GIC Pte, Singapore’s sovereign wealth fund, and Och-Ziff Capital Management Group LLC (OZM) each agreed to invest $100 million.

The company forecasts profit will rise at least 30 percent this year to 5.47 billion yuan ($889 million), from 4.19 billion yuan last year, according to the prospectus.

Emissions Cap

China, the world’s largest greenhouse gas emitter, agreed last month to begin reducing carbon dioxide emissions by about 2030 and turn to renewable sources for 20 percent of the country’s energy. The pledge, made at a meeting with U.S. President Barack Obama, marked the first time the country set a target for capping emissions.

CGN Power plans to double its nuclear production units in five years, from the current 11, Chairman Zhang Shanming said at a Nov. 26 press conference in Hong Kong. It has nine units under construction and will add another two by increasing its stake in the Taishan nuclear project, Zhang said.

Source: Bloomberg
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Re: CGN Power

Postby winston » Wed Dec 03, 2014 5:38 pm

China’s CGN Power Raises Over $3 Billion in Hong Kong IPO

China’s Largest Nuclear Power Plant Operator Prices Offering at Top End of Price Range

HONG KONG—China’s largest nuclear power plant operator has raised US$3.16 billion in an initial public offering in Hong Kong, pricing its offering at the top end of the price range, after strong demand from investors, people familiar with the situation said Wednesday.

CGN Power Co. has sold 8.8 billion shares at 2.78 Hong Kong dollars ($0.36) each, or the top end of an indicative price range of HK$2.43-HK$2.78, the people said. The IPO is the largest in Hong Kong since China Everbright Bank ’s US$3.2 billion IPO in December last year.

CGN’s share sale has received strong interest from investors, who expect the firm to benefit from Beijing’s push toward cleaner sources of energy. China is building more nuclear plants to reduce its reliance on coal, and has set a target to get nuclear power to comprise 2.7%, or 40,000 megawatts, of its total power capacity by 2015, up from less than 2% currently.

Demand from retail investors has been especially strong. The nuclear power plant operator has raised the portion of the IPO reserved for retail investors from an initial 5% of the offering to 20%, while the amount reserved for institutional investors will be scaled back to 80%. The move to increase retail investors’ share of the deal comes after the initial portion reserved for them was oversubscribed by over 250 times.

CGN is the first pure nuclear plant operator to list anywhere in the world since the 1996 listing of British Energy Group, which subsequently delisted, in London, according to Dealogic. Beijing-based China National Nuclear Power Co., the other big nuclear plant operator in China, is currently awaiting approval to list in Shanghai.

State-owned CGN Power, which will list on the Hong Kong Stock Exchange on Dec. 10., operates 11 reactors mainly in China’s southern Guangdong province, where the power grid is the company’s top customer.

Source: WSJ
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Re: CGN Power

Postby winston » Thu Dec 04, 2014 5:45 am

Cach investor subscribing to CGN Power may get at least one board lot of shares, a market source said.

China's largest nuclear power producer locked up to HK$350 billion in the retail tranche.

Trading starts on December 10.

Source: The Standard HK
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Re: CGN Power

Postby winston » Mon Dec 08, 2014 6:59 am

China’s largest nuclear-plant operator, CGN Power Co., last week saw the retail tranch of its IPO more than 250 times oversubscribed and raised $3.16 billion, after pricing the offering at the top end of the price range.

Investors expect the firm will benefit from China’s power policy, which encourages clean energy use.

Source: WSJ
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Re: CGN Power IPO

Postby winston » Tue Dec 09, 2014 1:47 pm

vested

<IPO News>CGN POWER (01816.HK) oversubscribed by 286x
Dec 9, 2014

CGN POWER (01816.HK) announced the results for share offering.

The offer price was set at the upper range at $2.78, with one-lot success rate of 100%.

Without the exercise of over-allotment option, the net proceeds amounted to $23.805 billion.

The shares under Hong Kong public offering was oversubscribed by 286 times.

After re-allocation, 1.765 billion shares were issued under public offering, of which the proportion of global offering increased to 20%.

The shares will be officially listed on 10 December.

Source: AAStocks Financial News
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