Power firm still aims for listing in September
(XIE YE)
05/29/2003
China Yangtze Electric Power Corp, which will acquire the power plants of the gigantic Three Gorges Dam project, said it still aims to list on domestic market in September despite the negative effects of SARS.The timing of the listing coincides with the first two generators of the dam project commencing operation. The company plans to use the proceeds to fund purchase of the two generators from its parent China Yangtze River Three Gorges Project Development Corp, the builder of the US$22 billion dam. "We are gearing up for the listing," said a senior official of the company. "The listing plan is well on schedule." The official did not specify how much capital it planned to raise, adding it would depend on the market condition. The company had earlier said it planned to raise over US$360 million through the initial public offering. China Yangtze Electric Power was established last year after the parent company spun off one of the largest domestic hydropower plants - Gezhouba Hydropower Plant. Minor shareholders include Huaneng Power International, China National Petroleum Corp and China National Nuclear Group. China Yangtze Electric aims to regularly raise money on stock and bond markets after its listing to finance its acquisition of more generators from the parent company, which plans to build 26 power-generating units with a combined capacity of 18.2 million kilowatts by 2009. The acquisition costs of all the generators is estimated to be 120 billion yuan (US$14.5 billion). According to Li Yongan, general manager of the parent company, the generation capacity of the listed company would reach 10 million kilowatts by 2005, 25 million kilowatts by 2010, and over 50 million kilowatts by 2010 after it completes the acquisition of all the generation assets of the Three Gorges Project.
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