Chinese outfit SDIC Power Holdings, which owns renewable energy developer Red Rock Power, has rekindled its plan to list on the London Stock Exchange (LSE) to raise funds for international expansion in clean power.
The company announced in November last year that it was planning to issue global depositary receipts (GDRs) and list on the LSE, but then in December delayed the proposal because of “market conditions”.
SDIC now plans to issue approximately 16,350,000 GDRs representing A shares in the company with a fully paid nominal value of RMB1.00 (€0.127) each.
The company said the price range for the offering is expected to be between $12.27 (€10.46) and $13.37 per GDR.
The final offer price will be determined following a book-building process, which is expected to be today on 16 October.
SDIC expects to raise between $220m and $240m to expand the group’s renewable energy business overseas and repay its offshore indebtedness.
The GDRs are expected to be admitted to listing on the standard segment of the Official List maintained by the UK Financial Conduct Authority and to trading on the Shanghai-London Stock Connect segment of the main market for listed securities of LSE.
Admission is expected to take place on or around 22 October.
SDIC chairman Zhu Jiwei said: “SDIC Power remains committed to its global growth strategy, through which we will increase our clean energy capacity and continue our international expansion.
“We believe a listing on the London Stock Exchange will support this new phase of our development, following our transformation from a coal-fired power focused company to one of China’s leading clean energy generators.
“With our diversified portfolio of generating assets, we are well-positioned to meet China’s growing energy needs, bringing hydropower from the country’s mountainous west to its industrial east coast.
“Outside China we will target acquisitions and new projects where we see attractive opportunities, including in Asia and Europe, where SDIC Power is already a co-investor in the Beatrice offshore wind power project, which is the largest operating offshore wind project in Scotland.”