CIC to invest $400 million in China’s wind power company Longyuan’s IPO: report

China Investment Corporation (CIC), the country's $300 billion sovereign wealth fund has agreed to buy $400 million worth of shares in China's biggest producer of wind power Longyuan Power Group Corp's $2.5-billion initial public offering

Longyuan  plans to sell 2.14-billion shares in a Hong Kong IPO, which would make it to be the world's third-largest alternative energy initial IPO since 2000.

Beijing-based Longyuan is selling 2.14 billion shares and plans to price them on 3 December with trading to start on 10 December. It has already secured approximately 30 per cent of the funds

Longyuan had initially planned to raise around $700 million through the IPO, but raised its IPO to $2.5 billion as it is witnessing a stronger-than-expected demand.

CIC will be on of the five strategic investors in Longyuan, Reuters  reported citing a source, as the IPO has attracted investing companies from China as well as overseas, which see a huge demand for renewable energy in China. Longyuan will also invest in wind projects overseas and develop wind farms off China's coast, the company's prospectus said.

According to Dow Jones Newswires, US billionaire investor Wilbur Ross is buying $100 million worth of shares, China Life Insurance has agreed to buy $180 million, while Value Partners Group and Bank of East Asia chairman David Li agreed to buy $50 million worth of shares in Longyuan's IPO.