Plans for IPO in HK blown off course
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Huaneng Renewables Co, a unit of China Huaneng Group Co, scrapped its plan for a US$1.3 billion initial public offering in Hong Kong as market conditions have changed and volatility have been excessive recently.
The wind power subsidiary of the country's largest power plant said that it would therefore be inadvisable to proceed with the global offering at this time, according to a filing to the Hong Kong Stock Exchange yesterday.
The subsidiary added it will closely monitor market conditions and may revisit the IPO plan when conditions improve.
"Investors are sitting on the sidelines amid flat market sentiment and the company hasn't decided when to relaunch the IPO plan," sources from one of its book runners, Macquarie Group, told Caixin Media yesterday.
Huaneng Renewables was due to launch its IPO on Thursday to raise not more than US$1.28 billion, according to the prospectus. Its offering range was between HK$2.98 (38 US cents) and HK$3.98 per share.
Huaneng Power International Inc, the Hong Kong listed unit of Huaneng Group, shed 0.47 percent to HK$4.27.
Datang Renewables is set to trade in Hong Kong on Friday. It has sold 2.14 billion shares at HK$2.33 per share, Hong Kong media said yesterday.
