Longyuan in $2.2b Hong Kong IPO

China Longyuan Power Group hopes to raise up to US$2.2 billion from an initial public offering (IPO) in Hong Kong, Reuters reported, citing sources close to the deal. The company, Asia’s largest wind power generator, is selling 30% of its enlarged share capital, or 2.1 billion shares, at between HK$6.26 (US$0.80) and HK$8.16 per share. Longyuan’s offering price represents a multiple of about 22 times to 28.9 times forecast 2010 earnings and postshoe multiple of 23 times to 30 times, one of the sources said. In July, it was reported that Longyuan wanted to raise US$700 million through its IPO, but strong demand has boosted expectations. Longyuan is a major subsidiary of China Guodian Corporation, one of China’s five largest power generation groups.