Guodian Technology & Environment Group Corp., a Chinese maker of wind power equipment, plans to cut the size of its Hong Kong initial public offering in half to about $300 million, said two people with knowledge of the matter.
The Beijing-based unit of China Guodian Corp., which originally offered 2.08 billion shares, plans to sell 1.09 billion shares near the low end of a marketed range, said the people, who asked not to be identified because the process is private. Guodian Technology had sought as much as HK$5 billion ($643 million) by offering shares at HK$2.16 to HK$2.42 each.
Companies including Haitong Securities Co. have struggled to draw investors to share sales in Hong Kong, where the main stock index (HSI) slumped 20 percent this year. Haitong, China’s third-largest brokerage by market value, this week canceled a plan to raise as much as $1.7 billion because of volatile markets, people with knowledge of the matter said on Dec. 13.
Guodian Technology’s operating profit rose 93 percent to 496 million yuan ($78 million) in the six months ended June from a year earlier, according to a filing to Hong Kong’s stock exchange on Dec. 5. Sales increased 84 percent to 6.8 billion yuan in the same period.
Two telephone calls to Guodian Technology’s head office in Beijing went unanswered. The company plans to set a final price for the IPO tomorrow and may start trading on Dec. 21, according to its listing prospectus.
