Wednesday 4 December 2019 10:32 am

Chinese power firm Sdic delays London listing on market conditions fears

Leading Chinese power generation firm Sdic Power today announced it would delay listing 10 per cent of its shares as global depositary receipts on the London Stock Exchange (LSE) due to “market conditions.”

In a statement, the company said it “believes this is a prudent decision and is in the best interests of its existing and future shareholders.”

Read more: China’s Sdic power to list in London for up to £640m

The decision to postpone is another blow to the LSE, which has seen a number of prominent IPOs cancelled or delayed recently.

Originally it had been suggested that the company would seek to complete the deal by Christmas.

Shanghai-listed Sdic is worth 57.92bn yuan (£6.4bn), which suggests that the offering could be worth up to £640m, according to a source familiar with the transaction.

The offering would be the second to take place under a new scheme linking the London and Shanghai bourses.

Chinese brokerage Huatai Securities listed in London in June this year, raising about $1.5bn in the process.

Sdic already has a presence in the UK market through its ownership of renewable energy firm Red Rock.

Read more: Chinese government gives nod to Sdic plans to float in London

The Scotland based company owns part of the Beatrice wind farm project through a joint venture with SSE Renewables and Copenhagen Infrastructure Partners.

With a capital expenditure of around £2.5bn, Beatrice was one of the largest ever private investments in Scottish infrastructure, and will supply wind powered electricity for up to 450,000 homes.