Longyuan H-share placement

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.
<div style="text-align: left;">
China Longyuan Power will use the proceeds to invest in its renewable energy projects
</div>
<div style="text-align: left;"> China Longyuan Power will use the proceeds to invest in its renewable energy projects </div>

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 said it may account for up to 50% of its existing H-share capital and 18.2% of its overall share capital. Based on Friday’s closing price of HK$5.84, the company could raise up to about...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222