China’s flagship nuclear power operator has outlined plans to raise up to $2.6bn in an initial public offering, as part of a larger drive by state-owned companies to diversify funding sources from the banking system.
China National Nuclear Power, a unit of China National Nuclear Corporation, or CNNC, plans to list 25 per cent of its shares on the Shanghai Stock Exchange, in what will be the largest domestic listing since mid-2010. The proceeds will be used to fund construction of four nuclear plants, the company said.
The proposed IPO comes a few months after Shanghai ended a ban on new listings, and has a long pipeline of companies waiting to list. Guotai Junan Securities, one of the country’s largest brokerages has also applied to list in Shanghai, and plans to raise up to Rmb22bn ($3.5bn).
Most of China’s largest state-owned companies have already listed in either domestic or international markets over the past two decades, with just a few waiting in the wings.
For the past decade, the Chinese state has encouraged the development of state-owned champions, but their growth has relied on a steady diet of low interest rate loans from state-owned banks that is now drying up.
Beijing is encouraging its state-owned sector to mine new sources of capital without giving up managerial or operational control.
CNNC, which accounts for about half of China’s nuclear power plants, needs huge flows of capital to build new plants to meet a national goal of generating more green energy.
几个月前，上海证交所解禁IPO，一大批公司排队等待上市。中国最大的券商之一国泰君安(Guotai Junan Securities)同样申请在沪上市，计划募资最多220亿元人民币（合35亿美元）。