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Shares of China Three Gorges Renewables Group rose 44 percent in its debut after the company raised $ 3.6 billion in China’s largest initial public offering in 2021.
China Three Gorges Corp. shares in the renewable energy sector, a state-owned company that registers it hydropower dam On the Yangtze River, the maximum number of days allowed by the Shanghai Stock Exchange on Thursday fell.
The group raised Rmb22.7 billion ($ 3.6 billion) in its IPO, which has been the largest equity asset in the country since $ 7.6 billion worth of stock sales China’s largest chip maker, Semiconductor Manufacturing International Corporation, came out last July. According to Bloomberg, the first day’s jump brought the company’s market capitalization to $ 17.1 billion.
China’s Three Gorges Renewables, which also has interests in wind energy, arrived when China’s cost of energy used with coal rose sharply.
The move reflected the desire of Chinese investors for energy assets, as Beijing wants wind to make a much greater contribution to the country’s electricity, said Bruce Pan, head of research at the China Renaissance investment bank.
“It’s not just a trend in China, it’s a trend around the world,” Pan said.
The IPO share order exceeded the offer 78 times, according to the company.
The group will use part of the proceeds from the sale of the shares to cover almost half of the cost of seven offshore wind turbine projects, as it and other renewable companies are already moving the company to complete the infrastructure. government subsidies expire at the end of the year.
“We anticipate that three Chinese canyons will endeavor to complete projects this year to receive funding,” said credit analyst Apple Li S&P Global Ratings.
The credit rating agency said this week that the IPO will give a major injection to the balance sheet of China’s parent group Three Gorges as the subsidiary carries out a “non-renewable non-hydropower development plan” in the coming years.
China Three Gorges Renewables on Tuesday launched its first floating wind platform on the coast of Zhejiang province in southeast China. Company he said the platform can “provide green and clean energy to 30,000 homes a year”.
Unlike fixed wind turbines, they can only operate in deep water. floating turbines it can generate electricity in the open sea by harnessing the force of stronger ocean winds.
September, China committed Achieving carbon neutrality by 2060, but the industry-fueled recovery from the Covid-19 pandemic has put pressure on its environmental intentions. It was produced in 2020 recorded quantities of steel and higher admissions new coal plants.
Last year, Wang Muyi, an analyst at UK think tank Ember, found new investments in wind, hydroelectric, solar and nuclear power. he could not continue there was a significant increase in electricity consumption in China between May and October.
The country is also suffering coal shortage as industrial activity rises, so does the price. Last month, a state council meeting chaired by Premier Li Keqiang stressed the need to hit China’s “rich coal resources” further, but added that the capacity for wind, solar, nuclear and hydroelectric power will increase this summer.
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