Sinovel Wind Group Co., which opened subscriptions to its initial public offering on Tuesday in Shanghai, has bumped its price range higher than originally anticipated. According to its exchange filing, the company plans to sell up to 105.1 million shares at 80-90 yuan each ($12.11-$13.62). Its expectation is to raise up to 9.46 billion yuan ($1.4 billion), which is nearly triple its original target.
Reuters reported that the company is capitalizing on a wave of demand for Chinese renewable energy stocks that have arisen from China's doubling of installed wind power capacity each year for the past several years. In its drive to dominate the sector, it has earmarked a portion of some $1.5 trillion in investments over the next five years for the green sector.
China is already the third largest provider of wind energy in the world, coming in behind the U.S. and Germany. It claimed that position in 2009.
The company has grown quickly over the last few years, but with competition becoming increasingly fierce in the field, growth of the industry as a whole has been slowing. In fact, the IPO could be a challenge for the Asian market.
The year 2010 set a record for IPOs globally and, according to Ernst & Young, Greater China made up more than 46% of that record in proceeds, bringing in $117.9 billion in 442 deals in the first 11 months. Hong Kong alone brought in more than $50 billion in offerings. However, volatility in the market caused Huaneng Renewables Corp., China's third largest wind company, to cancel its plans to list in Hong Kong.
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