China Power International Development Ltd.

active

In 2002, China broke up the former state-owned monopoly, State Power Corp., into five similar-sized power producers - China Huaneng Group, China Datang Group, China Huadian Group, China Guodian Group and China Power Investment Group. On October 15, 2004, China Power Investment Group became the fourth of these state-owned mainland power companies to list in Hong Kong; only China Guodian Group had not yet divested equity at that time. China Power International Development Ltd. was a wholly owned unit of China Power Investment Corp. and its listing vehicle. The IPO initially raised US$321.1 million, but after the bookrunner exercised an over-allotment ("green-shoe") option on October 19, issuing an additional 148.5 million shares at the offer price, the total amount raised by the sale increased to US$369 million. Including the over-allotment shares, China Power sold about 1.14 billion shares, split evenly between international and local investors, amounting to 38% of the company. China Power Investment Corp mainly invested in hydropower and was the smallest of the five spin-off Chinese energy companies. It had a 2004 asset portfolio capacity of 3,010 MWs, but planned to double that amount by 2009 after the construction of three new power plants in Anhui, Henan, and Hubei provinces.