Shares of China’s Three Gorges Renewable Group rose 44 percent during its debut after the company raised its largest initial bid of $ 3.6 billion in 2021.
Shares in Renewable Energy Database China Three Gorges Corp., a state-owned lending company hydropower dam On the Yangtze River, on Thursday, increased the maximum daily amount allowed by the Shanghai Stock Exchange.
The group raised Rmb22.7 billion ($ 3.6 billion) in its IPO, the largest joint-stock company debut in the country since $ 7.6 billion worth of shares sold in July last year by China’s largest chip maker, Semiconductor Manufacturing International Corporation. According to Bloomberg, the jump in the first day brought the company’s market capitalization to $ 17.1 billion.
The day when the renewable energy of China’s three gorges, which is also interested in wind energy, began the day when China faced a sharp rise in the cost of coal-fired energy.
The move echoes Chinese investors’ appetite for green energy assets as Beijing seeks to make a stronger contribution to the country’s electricity generation. This was stated by Bruce Pang, head of research at China Renaissance Investment Bank.
“It’s not just a trend in China, it’s a trend around the world,” Pang said.
According to the company, the demand for IPO shares exceeded supply by 78 times.
The group will use a portion of the proceeds from the sale of the shares to cover almost half of the cost of the seven offshore wind turbine projects, as other renewable companies are already rushing to build infrastructure. Government subsidies expire at the end of the year.
“We anticipate that China’s three gorges will try to complete their subsidy programs this year,” said Apple Li, a credit analyst at S&P Global Ratings.
The credit rating agency said this week that the IPO was making a significant injection into the balance sheet of China’s three gorges as the subsidiary pursued an “ambitious plan to develop non-hydropower renewable energy” over the next few years.
China’s Three Gorges Renewables launched its first floating offshore wind power platform off the coast of southeastern China’s hejiang province on Tuesday. Company: he said The platform can provide “green and clean energy for 30,000 households per year”.
Unlike fixed wind turbines, which can only operate in surface water, floating turbines can generate more offshore electricity using stronger ocean winds.
In September, China done to achieve carbon neutrality by 2060, but due to its industry, the recovery from the Covid-19 epidemic has put pressure on its environmental ambitions. Produced it in 2020 a record amount of steel և added approvals new coal plants,
A study led by Van Mui, an analyst at Amber Analytical Center in the United Kingdom last year, found that new investments in wind, hydro, and nuclear energy They could not follow With a sharp increase in electricity consumption in China from May to October.
The country is also suffering lack of coal as industrial activity rises, raising prices. Last month’s State Council, chaired by Prime Minister Li Keqiang, stressed the need for further exploitation of China’s “rich coal resources” but added that wind, solar, nuclear and hydropower capabilities would increase to power this summer.