Shares of China Three Gorges Renewables Group grew 44 percent since its debut after the company raised $ 3.6 billion in China’s largest initial public offering in 2021.
Shares in the renewable energy arm of China Three Gorges Corp., the state-owned company that gives its name to the hydroelectric dam on the Yangtze River, shot up the maximum daily amount allowed by the Shanghai Stock Exchange on Thursday.
The group raised Rmb22.7 billion ($ 3.6 billion) in its IPO, the largest capital debut in the country since a Sale of shares of $ 7.6 billion by China’s largest chipmaker, Semiconductor Manufacturing International Corporation, last July. The first jump of the day pushed the company’s market capitalization to $ 17.1 billion, according to Bloomberg.
The first day for China’s Three Gorges Renewables, which also has interests in wind energy, came when China faces a sharp rise in the cost of coal energy.
The move reflected a strong appetite from Chinese investors for green energy activity as Beijing seeks to make wind a much larger contributor to the country’s electricity production, said Bruce Pang, head of research for the bank. of China Renaissance investment.
“It’s not just a trend in China – it’s a worldwide trend,” Pang said.
Demand for shares in the IPO has exceeded supply 78 times, according to the company.
The group will use a portion of the proceeds from the sale of shares to cover nearly half the cost of seven offshore wind turbine projects, as it and other renewable companies rush to complete the infrastructure sooner. government subsidies fell at the end of the year.
“We anticipate China Three Gorges will make efforts to complete projects this year to receive subsidies,” said Apple Li, credit analyst at S&P Global Ratings.
The credit rating agency said this week that the IPO would provide a significant injection into the balance sheet of China-based parent group Three Gorges as the subsidiary pursues an “ambitious non-hydro renewables development plan” for the coming years.
China Three Gorges Renewables on Tuesday launched its first floating wind power platform off the coast of Zhejiang province in southeast China. The company he said the platform could provide “green and clean energy for 30,000 families a year.”
Unlike fixed wind turbines, which can operate only in shallow water, floating turbines it can generate electricity higher, harnessing the power of stronger ocean winds.
In September, China engaged to achieve carbon neutrality by 2060, but its recovery fueled by industry from the Covid-19 pandemic has put pressure on its environmental ambitions. By 2020, it has produced records amount of steel and approvals increased for new coal plants.
Last year’s research led by Wang Muyi, an analyst at British think-tank Ember, found that new investments in wind, hydroelectric, solar and nuclear power he couldn’t keep up with strong growth in electricity use in China between May and October.
The country also suffers from a lack of coal while industrial activity booms, prices push up. Last month, a meeting of the state council chaired by Premier Li Keqiang highlighted the need to further exploit China’s “rich coal resources,” but added that the wind capacity, of the solar, nuclear and hydraulic power will be increased to ensure energy supply this summer.