China Three Gorges New Energy plans IPO to fund 7 offshore wind projects
China Three Gorges New Energy (CTGNE) plans to launch an initial public offering (IPO) of its A shares at a total value of CNY 25 billion (approximately EUR 3.3 billion), with most of the raised funds to be used to invest in seven offshore wind projects.
According to a document published by China Securities Regulatory Commission (CSRC), the information on the IPO is only a pre-disclosure and CSRC has yet to approve the company’s application for issuance. The document states that China Three Gorges Corporation’s renewable energy unit would offer its shares at the Shanghai Stock Exchange.
Of the total of CNY 25 billion, China Three Gorges New Energy would invest CNY 20 billion (approximately EUR 2.6 billion) in seven offshore wind projects, while the remaining CNY 5 billion (approximately EUR 651 million) are set for supplementary liquidity.
The document lists seven offshore wind projects for which CGTNE would use the raised funds:
- Yangxi Shapa 300 MW Offshore Wind Farm
- Changyi City Marine Farm and Three Gorges 300 MW Offshore Wind Demonstration Project
- Yangxi Shapa Phase II 400 MW Offshore Wind Farm
- Zhangpu Liu’ao Offshore Wind Farm Zone D Project
- Changle Waihai Offshore Wind Farm Area A Project
- Jiangsu Rudong H6 (400 MW) Offshore Wind Farm
- Jiangsu Rudong H10 (400 MW) Offshore Wind Farm
The company has already invested in the projects and after the IPO the raised funds will replace part of the investments. If the net amount of raised funds is lower than planned, CTGNE will bridge the gap with its own investments in the projects, according to the pre-disclosure document.