0
HONG KONG: China's clean tech company are banking on institutions to drum up support for their initial public offerings that may raise a combined $1 billion, but heavy losses among listed peers could weigh on the offerings.
Guodian Technology and Environment Group, a maker of wind equipment, on Monday launched an institutional road show for its up to HK$5 billion ($643.22 million) IPO. Beijing Jingneng Clean Energy Co Ltd is in the process of marketing its own up to $300 million share sale. Both have cornerstone investors backing the deals.
“The IPOs will be greeted with caution in the market,” said Tanrich Securities vice-president for equity sales Jackson Wong.
“Having solid cornerstone investors will help raise their profile but won't hide the fact that the sector is under performing,” said Wong, referring to beaten-down clean tech stocks on the Hong Kong exchange.
Thomson Reuters Asia Pacific Renewable Energy Index which tracks clean energy stocks in the region, slipped 50 per cent this year, under performing the benchmark index which was down 18 per cent.
Five cornerstone investors including SAIF Partners and China High Speed Transmission Equipment Group Co Limited have so far committed to take up a combined $210 million in shares for Guodian's float, according to an IFR report.
Analysts said the rush for cash ahead of the new year was reminiscent of the IPOs seen a year ago when green stocks including China Datang Renewable braved torrid market conditions with scaled-down IPOs and underperformed on their debuts.
China Datang, which originally aimed to raise $1.5 billion, went for a $640 million IPO in December last year. Its shares fell 6 per cent on debut. The stock now trades 36 per cent below the HK$2.33 listing price.
“I would wait until after (Guodian Technology and Environment Group) lists. There's no rush because this is an industry with very high growth potential, said Ample Finance Group director of asset management Alex Wong.
“But right now, it still represents a risk and in this climate I don't think many will be rushing to get into this.” ($1 = 7.7735 Hong Kong dollars)
The campaign, which in Lebanon stars a former beauty queen and wildly popular band Mashrou3 Leila, also supplies a list of free and anonymous testing centres for both countries. But despite the tentative progress, experts say governments are less likely than ever to turn their attention to the rising epidemic in a region gripped by political upheaval.
“The common thread that links all countries in the region is the impact of stigma and discrimination, which are (among) the primary reasons that people living with HIV or at-risk populations do not have access to essential services,” said Bodiroza. “Without strong leadership, it is unlikely that these issues will be fully or properly addressed.”
