Sinovel Wind to raise $1.4-bn in Shanghai IPO
05 Jan 2011
China's largest wind turbine manufacturer Sinovel Wind Group Co Ltd is set to raise up to 9.5 billion yuan ($1.4 billion) in a Shanghai initial public offering (IPO) to fund the company's expansion and research and development plans.
Beijing-based Sinovel, a high-growth company in China's renewable energy sector, manufactures onshore, offshore, and intertidal series of wind turbines suitable for a variety of wind resources and environmental conditions.
The company plans to sell up to 105.1 million shares in a price range of 80-90 yuan per share to raise up to 9.5 billion yuan, about 2.7 times more than its original target of 3.45 billion yuan.
The per share price makes it the most expensive IPO ever raised on the Shanghai Stock Exchange, which is about 43.4-48.8 times the company's earnings in 2009. The final price will be decided on 6 January.
On its completion, the Sinovel IPO will become China's first major IPO of the year.
Through its phenomenal growth in recent years, Sinovel attained the No.1 position in China in 2008 and 2009 with installed wind power capacities of 1.4 gigawatt (GW) and 3.5 GW respectively.