(Adds indicative price range in second paragraph.)
Sept. 29 (Bloomberg) -- Sinohydro Group Ltd. raised 13.5 billion yuan ($2.1 billion) in its initial public offering, China’s biggest this year, after selling shares at the low end of their indicative price range as the market slumped.
The country’s largest builder of hydroelectric dams sold the shares at the bottom of a price range of 4.50 yuan to 4.80 yuan, according to a statement filed to the Shanghai Stock Exchange today. The company cut the size of its issuance to 3 billion shares on Sept. 26.
Sinohydro, whose IPO surpassed the 9.5 billion yuan raised by Sinovel Wind Group Co. in January, is planning hydropower dams and wind farms as part of China’s push to rely less on coal. The sale comes at a time when the benchmark Shanghai Composite Index has dropped 16 percent since the start of the year because of higher interest rates and a slowing global economy.
The company had planned to issue as many as 3.5 billion shares, with the proposed price range from its underwriters of 5.3 yuan to 6.4 yuan, according to a prospectus issued in July.
The IPO could have been the biggest since China Everbright Bank Co. raised 18.9 billion yuan in August last year. The exercise of Everbright Bank’s over-allotment option increased the amount it raised to 21.1 billion yuan.
Proceeds from Sinohydro’s share sale will help fund construction of projects including a hydropower dam in southwestern Sichuan province and a wind farm in the northern province of Gansu, the company said in July.
The IPO funds will also be used for a dam in Cambodia, Sinohydro said in July. The company has won construction contracts in Asia, Africa and South America.
This year’s decline in the Shanghai gauge extends last year’s 14 percent plunge, as the government increased measures to cool inflation that’s at the highest in almost three years.
--Editors: Ryan Woo, John Chacko.
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