China Green seeks $100b pre-IPO investment

China Green Energy hopes to raise US$100 million by selling a stake of about 25% to foreign investors ahead of the company’s initial public offering (IPO), the South China Morning Post reported. It is believed the IPO could be worth as much as US$200 million if the alternative energy provider ramps up its output. The Hangzhou-based company operates four plants that produce 122 megawatts of energy by burning rubbish that would otherwise go into landfills. It also burns waste coal, a byproduct of the mining process that includes a mixture of coal, soil and rock. Alternative energy companies have attracted interest from investors as Beijing seeks to reduce reliance on coal. From September 2007, power grid companies were required to buy all available power generated from alternative sources. The government wants 16% of the electricity supply to come from renewable sources by 2020 and has committed US$198 billion to this effort.