China Resources New Energy, a unit of state-backed China Resources Power, is preparing for what could be China's largest initial public offering in recent years. The renewable energy firm has attracted an overwhelming 6.4 trillion yuan ($943 billion) in bids from investors, with retail demand for its Shenzhen IPO topping 1,000 times the shares initially offered. This impressive subscription underscores strong investor appetite for clean energy assets, despite global economic uncertainties.
The company priced its IPO at 10.11 yuan per share and aims to raise up to 24.5 billion yuan ($3.6 billion) if an overallotment option is fully exercised. This would make it Shenzhen's biggest IPO on record, surpassing Yihai Kerry Arawana's 13.9 billion yuan listing in 2020. It would also mark China's largest domestic IPO since the Beijing-Shanghai High-Speed Railway raised 30.7 billion yuan in 2009. The strong retail interest led to a reallocation through a clawback mechanism, increasing the final retail tranche to 930.7 million shares, or 67.95% of the non-strategic placement, and was still 683.4 times oversubscribed after this adjustment.
The IPO capital, which will be approximately 21.3 billion yuan through the base offering and potentially up to 24.5 billion yuan with overallotment, is earmarked for a 40.4 billion yuan renewable investment program. This program includes wind farms, photovoltaic facilities, large clean-energy bases, and multi-energy systems, expected to add approximately 7.2 gigawatts of generation capacity. China Resources New Energy operates nearly 27.6 gigawatts of wind generation capacity and about 14 gigawatts of solar capacity as of the end of 2025. The company's valuation at 24 times its latest annual earnings is above Huadian New Energy's initial market entry multiple but below its post-listing appreciation.
While the immense retail bids demonstrate significant interest, the 6.4 trillion yuan represents bid value, not the actual amount the company will receive. Analysts note that the post-listing performance will depend on factors like electricity prices, renewable output, and project execution, as recent first-quarter results showed a 2.8% decline in revenue to 6.21 billion yuan and a 31.1% drop in net profit to 1.62 billion yuan due to weather, curtailment, and pricing changes. The trading debut for China Resources New Energy on the Hong Kong Stock Exchange is set for July 2.
