Huaneng Renewables calls off $1.3 billion IPO

Huaneng decides not to proceed with its Hong Kong listing, blaming volatile market conditions, while domestic competitor China Datang prices its share offer at the bottom end to raise $644 million.

Huaneng Renewables Corporation, the wind power unit of China’s largest power producer China Huaneng Group, scrapped its $1.3 billion Hong Kong initial public offering yesterday, citing unfavourable market conditions.

The cancellation came as a surprise as Huaneng was believed to have better selling points and stronger earnings prospects than domestic competitor China Datang Corporation Renewable Power, which was in the market at the same time.

Datang had seemingly no issues with the market conditions and raised HK$4.99 billion $644 million after pricing its IPO at the bottom end of the indicated range yesterday.

Huaneng is the 10th Hong Kong IPO to be called off this year, according to Dealogic, as investors have...

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