Fuxin New Energy expects to list on the stock exchange by the third quarter of this year, sources told Bloomberg.
Huadian, one of China’s ‘big five’ state-owned utilities, had 3.2GW of installed wind capacity at the end of 2011 according to its website, making it one of the nation’s largest wind developers.
Fuxin New Energy secured approval for an IPO from the Ministry of Environmental Protection (MEP) in November last year.
According to a document on the MEP website related to Fuxin’s application, the company was planning to raise around 6bn yuan ($951m).
About a third of the proceeds would be used to construct new projects while another 1.8-2.4bn yuan was to go towards acquiring domestic or overseas wind-power equipment.
Huadian is currently in talks with Nordex to buy a stake in the German firm’s Chinese manufacturing operations.
Remaining funds generated by the share sale would be used to repay loans and boost cashflow.
Bank of America, Citic Securities International, Citigroup and UBS will manage the sale, according to the report.
A Huadian media spokesperson told Recharge the company cannot comment.
Other utilities including Datang, Huaneng and Guodian have also listed their renewable-energy divisions in Hong Kong in recent years.
However, investor concerns related to slower growth in China’s wind market and saturated grid capacity are weighing on renewables companies’ shares.
Huaneng Renewables fell more than 11 per cent in its trading debut last June. It is currently trading at HK$1.89 per share, down from a HK$2.50 offer price.
