Nuclear Energy in China– the 2.6 billion IPO

Daya Bay Nuclear Power Plant, China

China National Nuclear Power Co. plans to raise up to 16.25 billion yuan ($2.6 billion) in an initial public offering to fund nuclear-power projects, as Beijing pushes nuclear energy and renewables to combat greenhouse-gas emissions and pollution.  The state-owned company, one of the country’s biggest nuclear-power operators by capacity, proposed to sell up to 3.65 billion new shares, or 25% of its enlarged capital, ahead of a listing on the Shanghai Stock Exchange, according to a draft of its IPO plan released on the China Securities Regulatory Commission website.  The proceeds from the IPO will help finance four nuclear-power projects in Fujian, Zhejiang, Hainan and Jiangsu provinces, the company said. These projects were valued at about 151.9 billion yuan.

If completed, the offering could be the largest in mainland China since August 2010, when China Everbright Bank raised 21.7 billion yuan. It also could be the biggest since China lifted a 14-month moratorium on IPOs in January…China aims to reach 200 gigawatts of nuclear capacity by 2030, up from 14.6 gigawatts last year. But the nation must first overcome a number of hurdles.  “Technology constraints, inadequate infrastructure for uranium-fuel fabrication and disposal, public opposition to inland nuclear plants, and shortages of qualified personnel all mean a more realistic nuclear capacity in 2030 will be 175 gigawatts,” according to energy consultancy Wood Mackenzie….

China National Nuclear Power, China General Nuclear Power Group and China Power Investment Corp. operate most of China’s nuclear power plants. China has 17 nuclear reactors operating on six separate sites, according to China National Nuclear Power’s IPO plan.

Amy Li and Wayne Ma, China National Nuclear to Raise $2.6 Billion in IPO, Wall Street Journal,  May 5, 2014

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