LEADING Chinese energy generation firm SDIC Power yesterday confirmed it would offer 10 per cent of its shares as global depositary receipts on the London Stock Exchange (LSE).
Shanghai-listed SDIC is worth 57.92bn yuan (£6.4bn), which suggests that the offering could be worth up to £640m, according to a source familiar with the transaction.
It was also suggested that the company would aim to complete the deal by Christmas. SDIC said the proceeds would be used for further investment in renewable energy sources.
The offering is the second to take place under a new scheme linking the London and Shanghai bourses.
Chinese brokerage Huatai Securities listed in London in June this year, raising $1.5bn (£1.17bn) in the process. The decision is a much-needed boost for the LSE, which has seen a number of initial public offerings cancelled or postponed in recent months.
SDIC chairman Zhu Jiwei said: "A listing on the LSE will represent the next stage in the development of SDIC Power, following our transformation from a coal-fired power focused company to one of China's leading clean energy generators.
"We believe that a flotation on the LSE will support our growth strategy, through which we will increase our clean energy capacity and continue our global expansion."
He added that the firm will seek acquisitions and new projects, including in Asia and Europe.
SDIC is already a co-investor in the Beatrice offshore wind power project, the largest such asset in Scotland.
The wind farm, which can supply wind-powered electricity for up to 450,000 homes, was funded through a joint venture between SSE Renewables, Copenhagen Infrastructure Partners, and SDIC Red Rock Power.
(c) 2019 City A.M., source Newspaper