by winston » Thu Dec 11, 2014 8:56 am
not vested
China nuclear giant CGN Power surges 24 pct in Hong Kong debut
HONG KONG, Dec 10 (Reuters) - Shares in China's largest nuclear power producer, CGN Power Co Ltd, surged 24.1 percent in their Hong Kong trading debut on Wednesday as investors bet on a government-backed sector primed for growth.
CGN Power raised about $3.2 billion after pricing the deal at the top of a HK$2.43 to HK$2.78 per share marketing range. . By 0142 GMT, the shares in the state-controlled company were trading at HK$3.31, compared with their IPO price of HK$2.78, retreating from the day's high of HK$3.48. The benchmark Hang Seng index was indicated to open down 0.2 percent.
CGN Power plans to use the proceeds of the IPO mostly to expand installed capacity with nine new power generating units and to buy a stake in a nuclear power plant from its parent company.
Energy-hungry China aims to increase its reliance on nuclear energy to bring its spiralling greenhouse emissions under control by 2030. Experts have said that nuclear power is the only scalable replacement energy in China's strategy.
CGN Power said it expected 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.
The retail portion of the IPO was hugely over-subscribed, triggering a so-called claw-back rule that forced underwriters to reallocate shares from institutional investors to individuals, CGN Power said in a filing on Tuesday. The institutional tranche of the deal was "very substantially over-subscribed", the company added.
ABC International, Bank of America Merrill Lynch and China International Capital Corp (CICC) were hired as sponsors of the IPO and will earn a combined $3 million for their role.
Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"