China Datang Corp (listed subsidiary: Datang International Power; 601991.SH, 0991.HK) plans to spin off its renewable energy unit through a US$1 billion initial public offering in Hong Kong, Bloomberg reported, citing two people familiar with the situation. China Datang Corp Renewable Power has applied to list shares on the Hong Kong stock exchange and may make its debut as soon as late December. The state-owned parent company, China’s second-largest power producer, is said to have appointed Credit Suisse (CS.NYSE, CSGN.SIX), UBS (UBS.NYSE, UBSN.SIX) and JPMorgan (JPM.NYSE), among others, to run the share sale. Companies have raised a record US$40.6 billion through IPOs in Hong Kong so far this year, with mainland firms accounting for 60% of the funds raised. The Chinese government has indicated that power grid companies will be required to buy a portion of electricity supplies from renewable sources under the 12th Five-Year Plan.
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