china longyuan successfully completed the placing and book-running of h shares on the night of 13 december 2012. the final placing price was determined to be hk$5.08 and approximately 572 million shares will be issued, representing 21.11% of the total number of h shares in issue. proceeds raised aggregated to us$375 million (approximately hk$2,906 million).
the placing and book-running were conducted commencing from the closing of the hong kong stock market on the night of 13 december. the events were well received by various qualified investors from major financial zones in the world such as asia, the united states, canada and europe and attracted more than 90 internationally renowned investors to subscribe, thus recorded multiples of subscription for book-running.
the successful listing of china longyuan had been among the most popular public offering among investors in the international capital market recently and marked the first public offering to be conducted by a chinese renewable energy enterprise in hong kong. amidst the recent turmoil in the international financial market and uncertainty in the capital market, the percentage discount of the placing price of china longyuan was only at 8.1% as compared with the closing price of the date and marked the discount of 5% and 3.5% respectively as compared with the average closing prices of the last 5 and 10 days, well below the average discount level of 9% of public placing in hong kong in the past two years, which yet again illustrated the attractiveness and influence of china longyuan as a leading chinese renewable energy enterprise in the international capital market.
most investors who had been granted shares under the placing of china longyuan, which was implemented on a completely market driven base, are long-term fund investors who have expressed their concern over the company’s development for a long time and are optimistic about the development prospect of the company. the investors also include other institutional investors who give high recognition of the investment value of the company, which fully exemplified the recognition of china’s renewable energy industry and longyuan’s development from the international capital market and the upbeat attitude of the market towards the development prospect of both the industry and the company. the recognitions are testimonies to the influence of china longyuan as the world’s leading wind power enterprise in the capital market as well as longuan’s board and management’s capability of tailoring capital operation to the circumstances and their outstanding and determined execution in the ever-changing international capital market.
the success of the placing was attributable to years of dedication to renewable energy of the chinese government and its stable policy support and the years of persistence of china guodian corporation in developing strategies of renewable energy business and its unwavering efforts in bringing the strategies into full play. such success was attributable to the unrivalled leadership of longyuan power in china’s renewable energy industry and its exceptional performance, as well as the insistence of the board and the management of the company in fulfilling their undertakings to the capital market-of establishing a sound corporate image and market influence. such success was also attributable to the great importance the company attached to the sound investor base brought by communications with the domestic and foreign investors and the widespread recognition of the company’s value received from the investors.
the success of the placing provided additional capital for china longyuan to continuously tap into opportunities favourable to the expansion of its core business and laid solid foundation for the company to continuously set itself apart from its peers in china’s renewable energy industry as the world’s leading enterprise.