January 6, 2011
Beijing. Sinovel, a Chinese wind turbine maker, said yesterday that it planned to raise up to $1.4 billion in an initial public offering in Shanghai to finance growth, another sign of China’s push into alternative sources of energy.
The company said it would sell 105.1 million shares for 80 to 90 renminbi, or $12.10 to $13.60, apiece, which would represent nearly 11 percent of its capital and a price-to-earnings ratio of up to 48.83.
The company plans to use the funds to build a research lab and new factories, according to a prospectus issued with the country’s securities regulator. Its production consists mainly of 1.5 megawatt and three megawatt wind turbines. Sinovel’s offering looks to be the first major capital raising of 2011 in China. (Agencies)
Initial public offerings raised a record 483.3 billion renminbi last year on the mainland, according to Bloomberg data. Pricewaterhousecoopers, the accounting house, has predicted another bumper year for new issues there, saying it expected offerings worth 400 billion renminbi. (Agencies)