The new energy arm of power generation behemoth China Three Gorges Corp. has taken one step closer to a RMB 25 billion ($3.8 billion) IPO in Shanghai as it seeks keep up its cash-burning offshore wind farm expansion even as government subsidies dwindle, reported Caixin.
China Three Gorges Renewables (Group) received approval for the IPO from the China Securities Regulatory Commission (CSRC), according to a statement the regulator published on Thursday. The go-ahead came almost eight months after the company submitted its prospectus to the regulator.
The state-owned firm, which specializes in solar and wind power generation, aims to issue 8.57 billion shares, according to the prospectus. Four-fifths of the takings are earmarked for seven offshore wind power farms with combined planned capacity of 1.8 gigawatts (GW). The rest will be used to replenish cash flow.