Chinese energy-efficiency company Nobao Renewable Energy Holdings Ltd. released estimated terms for its planned initial public offering, which set up a smaller IPO than the maximum it had originally projected.
It estimated an offering of 11.2 million American depositary shares, with the deal’s estimated price between $11 and $13 per ADS. Earlier this month, it projected the sale of up to an estimated $300 million of ADSs.
The company makes geothermal-energy systems to heat and cool commercial buildings. The technology reduces energy consumption—and operating costs—compared with conventional heating and cooling systems.
Its revenue has risen over in the last three years, last year more than doubling to $52.8 million. Although it was profitable in 2008, it posted losses in 2007, 2009 and last year and said it may not be profitable this year as well.
With proceeds from the IPO, it planned to use $110 million to expand, including funds for equipment, drilling and installation costs.
It has applied to list on the New York Stock Exchange under the symbol NRE.
Each ADS represents the right to receive six ordinary shares. After the offering, it would have roughly 327.3 million ordinary shares outstanding.
A glut of Chinese companies went public in the U.S. last year in the hope of cashing in on U.S. investor demand. In 2010, four of the five best IPO debuts on U.S. exchanges were Chinese stocks, although the opposite was also true: the five worst debuts were China-based companies.
