Oct. 17 (Bloomberg) -- Sinohydro Group Ltd.’s shares will start trading in Shanghai tomorrow, according to a statement to the stock exchange yesterday. The initial public offering will probably be the biggest in China this year.
The nation’s largest builder of hydroelectric dams raised 13.5 billion yuan ($2.1 billion) by selling the shares at the bottom of a price range of 4.50 yuan to 4.80 yuan, surpassing the 9.5 billion yuan raised by Sinovel Wind Group Co. in its IPO in January.
The listing comes as China’s stock market slumps and liquidity tightens with small companies in cities such as Wenzhou facing a cash crunch. The benchmark Shanghai Composite Index has fallen 13 percent this year, driving valuations to near record low levels. The company cut the size of its IPO to 3 billion shares from 3.5 billion shares.
Beijing Jingkelong Co., a Hong Kong-listed supermarket operator, said Oct. 14 its plan to sell shares in Shanghai was rejected by the China Securities Regulatory Commission.
The securities regulator may slow approvals for share sales, 21st Century Business Herald reported Sept. 22. The CSRC aimed to support Sinohydro’s IPO, the paper said.
China’s bank lending last month was the least since 2009, while M2, the broadest measure of money supply, rose 13 percent from a year earlier, the least in almost a decade, according to economic reports released after the close of markets on Oct. 14.
Wenzhou will implement measures to “maintain financial order” as it seeks to clamp down on illegal financing and keep executives whose companies are saddled with bad debt from trying to flee, the city’s public security bureau said in a statement on its website Oct. 14.
Proceeds from Sinohydro’s share sale will help fund construction of projects including a hydro-power dam in southwestern Sichuan province and a wind farm in the northern province of Gansu, the company said in July.
--Bloomberg News. Editors: Allen Wan, Reed Landberg
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