Datang wind power unit raises $643m in Hong Kong IPO

Wind energy firm China Datang Corp Renewable Power raised US$643 million through its Hong Kong initial public offering, Bloomberg reported, citing two people familiar with the situation. The company, a subsidiary of China Datang Corp (listed unit: Datang International Power; 601991.SH, 0991.HK) sold 2.14 billion shares at HK$2.33 (US$0.29) each, the low end of its indicative range. This is a reflection of the increasingly difficult market. The Hang Seng Index is down 7.2% from its 12-month high reached on November 8 and two companies – Bluestar Adisseo Nutrition Group and China Auto Systems Technologies – have postponed IPOs in the last month. The Datang offering has been helped by pre-IPO investment worth US$260 million from backers including China Power International Holding (listed unit: China Power International Development; 2380.HK). The company will use the proceeds of its listing to expand wind power capacity and pay bank loans. Its target profit for 2010 is US$61 million, compared with US$55 million a year ago.