China Nuclear plans float to fund projects

City A.M. Reporter
CHINA National Nuclear Power Co, the country’s biggest nuclear power developer, plans to raise money to help fund projects worth £17.6bn via what could be one of China’s biggest initial public offerings (IPOs).

It did not specify its fundraising target or IPO timing in a statement on the Ministry of Environment Protection’s website, but said the IPO proceeds would go towards five projects with a total investment of 173.5bn yuan (£17.6bn).

The ministry said it had approved the IPO, which would also need the go-ahead from securities regulators.

China suspended approvals of new nuclear power plants in the wake of Japan’s nuclear crisis in March 2011 following a devastating tsunami, and ordered nationwide safety checks on plants and construction sites.

State media have said China will likely scale down its 2020 nuclear power generation capacity target to 60-70 gigawatts from earlier expectations of around 80GW.

China National Nuclear was formed last year as part of the restructuring of its parent China National Nuclear Corporation. If all or most of the projects are financed by share sale proceeds, its IPO could be mammoth, potentially surpassing Agricultural Bank of China’s Hong Kong-Shanghai dual listing to become China’s biggest.