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After China Three Gorges Renewable Energy Group raised $3.6 billion in China’s largest initial public offering in 2021, the group’s stock soared 44% on its debut.
Shares in the renewable energy sector of China Three Gorges Corporation, a state-owned company under its name Hydroelectric dam Yangtze River set the highest single-day limit on the Shanghai Stock Exchange last Thursday.
The group raised RMB 22.7 billion (US$3.6 billion) through an initial public offering, which is the country’s largest initial public offering since its listing. $7.6 billion in stock sale It was launched in July last year by China’s largest chip manufacturer SMIC. According to Bloomberg News, the jump on the first day pushed the company’s market value to $17.1 billion.
The day when China Three Gorges Renewable Energy Company, which is also interested in wind power, made its debut because China was facing a sharp increase in the cost of coal-fired power generation.
Bruce Pang, head of research at investment bank Huaxing Capital, said the move reflects the strong interest of Chinese investors in green energy assets, as Beijing seeks to make wind energy a greater contributor to the country’s electricity output.
“This is not only a trend in China, but also a trend in the world,” Pang said.
According to the company, demand for IPO shares exceeds supply by 78 times.
The group will use part of the proceeds from the sale of shares to pay for nearly half of the cost of seven offshore wind turbine projects, as it and other renewable energy companies are eager to complete the infrastructure before then. Expiry of government subsidies end of year.
“We expect China Three Gorges Project will strive to complete these projects this year to obtain subsidies,” said Apple Li, a credit analyst at Standard & Poor’s Global Ratings.
The credit rating agency said this week that the IPO will inject large amounts of capital into the balance sheet of parent company China Three Gorges as the subsidiary pursues “ambitious non-hydro renewable energy development plans” in the next few years.
China Three Gorges Renewable Energy launched its first floating offshore wind power platform on the coast of Zhejiang Province in southeastern China on Tuesday.the company Say The platform can “provide green and clean energy for 30,000 households every year”.
Unlike stationary wind turbines that can only operate in shallow water, Floating turbine It can generate electricity farther offshore and use stronger sea breeze.
September, China Firm To achieve carbon neutrality by 2060, but its recovery from the Covid-19 pandemic driven by the industry has put pressure on its environmental ambitions. In 2020, it produced Record amount of steel And increase approval New coal-fired power plant.
Last year’s research led by Ember analyst Wang Muyi, a British think tank, found that new investments in wind, hydro, solar and nuclear energy Can’t keep up Between May and October, China’s electricity consumption rose sharply.
The country is also suffering Coal shortage As industrial activity boomed, prices were pushed up. Last month, the State Council meeting chaired by Premier Li Keqiang emphasized the need to further develop China’s “abundant coal resources”, but added that this summer will increase the installed capacity of wind, solar, nuclear and hydropower to ensure energy supply.
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