Chinese outfit SDIC Power Holdings, which owns renewables developer Red Rock Power, is considering proceeding with a share offering to raise money for the former company’s overseas clean power business and repay debt.
SDIC said that the offering of global depositary receipts (GDRs) – representing A shares – would be priced at a nominal value of RMB1.00 (€0.13) each.
Should the company proceed with the offering, 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 traded on the Shanghai-London Stock Connect segment of the main market for listed securities of London Stock Exchange and the Shanghai Stock Exchange.
The newly-issued GDRs would be offered and sold outside the US in “offshore transactions”, SDIC said.
Goldman Sachs International, UBS and HSBC Bank are joint global co-ordinators and joint bookrunners.
SDIC chairman Zhu Jiwei said: “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.
“We strive to contribute to the development of Shanghai-London Stock Connect and the deepening of financial cooperation between China and the UK.”
SDIC’s consolidated installed capacity was 34.4GW at the end of June comprising hydro (48.8%), coal-fired power (45.8%) and wind and solar projects (5.4%).
Red Rock Power is an investor in the operational 588MW Beatrice offshore wind farm (pictured) and the under development 700MW Inch Cape offshore project, both of which are located off Scotland.