China Three Gorges Shares Oversubscribed by 78 Times in Pre-IPO Lottery

What’s new: Shares in China Three Gorges Renewables (Group) Co. Ltd. (600905.SH) were oversubscribed by 78 times (link in Chinese) in an online lottery held ahead of its planned 22.7 billion yuan ($3.6 billion) listing on the Shanghai Stock Exchange, the company said in a filing to the bourse on Wednesday.

The wind and solar unit of state-owned China Three Gorges Corp., which operates the world’s largest hydroelectric plant, is set to hold the largest ever initial public offering (IPO) by a Chinese power company.

The firm has set a preliminary price for the IPO of 2.65 yuan per share and plans to use the proceeds to build offshore wind farms.

The background: Investor interest in Chinese renewables companies has surged since Beijing last year announced bold plans to bring emissions of carbon dioxide, a planet-warming greenhouse gas, to a peak by 2030 and to net zero by 2060.

If the listing goes according to plan, Three Gorges Renewables will seize the crown from CGN Power Co. Ltd. (oo3816.SZ), which raised 15 billion yuan when it listed in Shenzhen in 2019.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

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