Shearman & Sterling, Clifford Chance, King & Wood Mallesons and Grandall Law Firm have scored key advisory roles on CGN Power Co’s initial public offering in Hong Kong.
CGN Power, China’s largest nuclear power producer, issued 8.82 billion new shares at HK$2.78 each, valuing the offering HK$24.52 billion ($3.2 billion), the second-largest in the Asia-Pacific region so far this year.
The company received commitments worth $1.33 billion from 18 "cornerstone" investors, helping secure demand for the deal before it was launched to retail and other institutional buyers.
ABCI Capital, Merrill Lynch, China International Capital Corp were hired as sponsors of the IPO, with BNP Paribas, CLSA, Goldman Sachs, ICBC International Capital and Morgan Stanley also acting as joint global coordinators.
Shearman & Sterling advised CGN Power on Hong Kong and U.S. law, while King & Wood Mallesons provided PRC legal advice.
Clifford Chance advised the joint sponsors and underwriters on Hong Kong and U.S. law, while Grandall Law Firm (Shenzhen) acted as PRC counsel.
As a nuclear energy provider, CGN Power is set to benefit from China’s efforts to curb environmental pollution by diversifying its energy generation away from fossil fuels. In a draft IPO prospectus, it said it plans to use proceeds partly to expand installed capacity with nine new power generating units.
CGN Power said it expects China's installed capacity for nuclear power to surge to 128 gigawatts (GW) by 2030 from 16 GW in 2013. The company sees its own output more than doubling to 24,970 megawatts (MW) by 2019 from 11,624 MW in 2014.
The shares debut in Hong Kong on Dec. 10.
