China Resources New Energy, the renewable energy unit of China Resources Power, launched its initial public offering (IPO) on the Shenzhen Stock Exchange, aiming to raise approximately 24.5 billion yuan (around $3.6 billion). This offering, which began price consultations on June 16 and subscriptions on June 22, is set to be the largest IPO in Shenzhen's history, surpassing the previous record of 13.9 billion yuan set by Yihai Kerry Arawana Holdings in 2020. The company plans to sell about 2.1 billion shares, representing 16.2% to 18.2% of its enlarged capital, with an additional greenshoe option that could increase the total to 2.42 billion shares and the potential fundraising to $3.6 billion.
The proceeds from the IPO will be utilized to fund a substantial pipeline of renewable energy projects, primarily focusing on wind and solar developments across China, with a total investment estimated at 40.4 billion yuan. These projects include new energy bases, multi-energy complementary initiatives, and green ecological development projects. The IPO also marks the first time a "red-chip" company (an overseas-incorporated company operating mainly in mainland China) will list on the Shenzhen Stock Exchange under its main board's registration-based IPO system. China Resources New Energy develops and operates wind farms and photovoltaic power plants, and by the end of 2025, its controlled installed capacity reached 41.59 GW across 31 provincial-level regions in China.
The IPO has garnered significant interest from retail investors. The online subscription cap is set at 632,000 shares, requiring a Shenzhen market value allocation of 6.32 million yuan for maximum subscription, which is the highest among main board IPOs this year. Despite a projected decline in attributable net profit for 2025 to 6.1 billion yuan, down from 8.28 billion yuan in 2023, the company maintains a strong industry position. The offering is jointly sponsored by China International Capital Corp (CICC) and Citic Securities. Strategic investors, including China Chengtong Holdings Group, Shenzhen Gas, and various insurance companies, will acquire 1.05 billion shares, or half of the base offering.
