2 China energy firms eye $2bln in IPOs

China Huaneng Group and Datang bank on Hong Kong market's appetite for renewable energy listings.

China Huaneng Group Corp and Datang Corp, the country's top power producers, plan to float shares of their renewable energy units in Hong Kong in offerings that could raise over $2 billion, sources close to the deals said on Tuesday.

The deals are unfolding as China aggressively develops its renewable energy sector and the nation's biggest power firms look to boost investment in the industry to drive future growth.

Huaneng's renewable energy unit, Huaneng New Energy Industrial Co., plans to raise $1 billion to $1.5 billion in an initial public offering as early as October, sources close to the deal said on Tuesday.

China Datang Corp, the country's second-largest power producer, also plans to float shares of its renewable energy unit in a Hong Kong IPO as early as December, sources familiar with the deal said.

"The market still has appetite for new energy listings," said Patrick Yiu, a director at CASH Asset Management.
"Depending on the valuations, renewable enery shares may still be attractive given expectations of growth in the industry."

View the full story in Reuters.