Longyuan Power drops on share sale plan

China's largest wind power producer says the placement of new H-shares may account for up to 18.2% of its overall share capital and, based on current market prices, it could raise as much as $900 million.

Longyuan Power drops on share sale plan
China Longyuan Power will use the proceeds to invest in its renewable energy projects

The share price of China Longyuan Power, China’s biggest producer of wind power, yesterday dropped 10.8% after the company said it plans to issue new H-shares, as investors worried about the dilution and about a potential overhang on the stock until the sale has been completed. The drop left the stock at its lowest level since the listing in Hong Kong more than three years ago.

Longyuan didn’t specify the size of the deal, but...

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