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Chinese hydro major SDIC Power ponders London listing

Expat Capital / All Rights reserved

November 21 (Renewables Now) - SDIC Power Holdings Co Ltd (SHA:600886), a Chinese power producer with a large renewables portfolio, is mulling over the possibility of listing global depositary receipts (GDRs) in London.

The plan is to offer GDRs for listing on the standard segment of the Official List maintained by the UK Financial Conduct Authority (FCA) and to trading on the Shanghai-London Stock Connect segment of the main market for listed securities of the London Stock Exchange.

While the company did not unveil how much it hopes to raise from the possible offering, a source familiar with the matter told Reuters that it targets between USD 600 million (EUR 542m) and USD 800 million from the sale. The proceeds from the transaction will be spent on expanding the group's renewable energy business overseas and repaying its offshore indebtedness, according to the announcement.

“Our decision to issue GDRs was made in response to our business needs and aims to further enhance our international profile and influence in Europe, especially in the UK, to promote our business development in these regions. Through this offering, we will gain better access to the international capital markets, reaching an important milestone for our global expansion,” stated Zhu Jiwei, chairman of SDIC Power.

Goldman Sachs International, the London branch of UBS AG and HSBC Bank Plc serve as joint global coordinators and joint bookrunners.

As at end-June 2019, SDIC Power had a consolidated installed capacity of 34.4 GW, of which 48.8% comes from hydropower, 45.8% from coal-fired power and 5.4% from wind and solar power plants. The group says it is the third largest hydropower company in China among the publicly listed businesses.

(USD 1.0 = EUR 0.903)

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