China’s largest wind turbine manufacturer, Sinovel Wind, is preparing for its IPO on the Shanghai exchange in China.
The company hopes to raise $1.4 billion – almost triple its original target. It plans to sell 105 million shares at a price of 80-90 yuan.
Last year, Huaneng Renewables Corp, China’s third largest wind manufacturer cancelled its Hong Kong IPO because of market volatility.
Sinovel’s IPO is priced high at about 44 times 2009 earnings – the average for IPOs on the Shanghai exchange was 30 times earnings in 2010.
The wind industry had a very tough year in 2010 for a variety of reasons, including increased competition in the face of constrained financing and low natural gas prices.
Sinovel plans to use the proceeds to expand capacity and introduce a 3 MW turbine. Even with lots of competiton, the company can’t meet customer demand.
China has allocated some $1.5 trillion for the cleantech sector over the next five years.
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