Shares in the Three Gorges hydropower dam will be listed on the domestic stock market and possibly also in Hong Kong and London, the Financial Times reported. Li Yongan, deputy general manager of China Yangtze River Three Gorges Project Development Corp, the company that oversees the project, said that the initial public offering on the Shanghai A-share market is expected to raise Yn4bn-5bn.
The 18,200MW generating capacity of the dam would be injected into the listed company at a cost of Yn100bn, making it potentially China’s largest listed company. The group had been in talks with US energy company Mirant and CLP China Power of Hong Kong about taking part of a 10 per cent tranche being offered in private placements to four strategic investors. The other two would be domestic companies. “Three Gorges Electric Power will gradually acquire all the power generating plants from its parent and aims to become the world’s top power generating company by 2020,” said Li.
Li also said that the group was considering London for an IPO because its laws are similar to those in Hong Kong and some of the dam’s creditor banks are European.