May 15 (Renewables Now) - Chinese solar power firm Xinyi Energy Holdings Ltd expects its shares to start trading on the Hong Kong Stock Exchange (HKEX) on May 28.
The stock code will be (HKG:03868), the firm said today in an update on its initial public offering (IPO).
Xinyi Energy is selling 188.3 million shares in Hong Kong and over 1.69 billion international offer shares. A pricing range of HKD 1.89 to HKD 2.35 per share has been set by the company, a unit of solar glass maker Xinyi Solar Holdings Ltd (HKG:00968). At the top of that range, it would raise more than HKD 4.4 billion (USD 560.6m/EUR 500m).
The spin off of Xinyi Solar's power unit is necessary because the market position and the valuation methodology of the two businesses are very different. Xinyi Solar, as a photovoltaic (PV) glass maker, is in the industrial sector and is typically valued by investors on price-to-earnings multiples. Xinyi Energy, on the other hand, is a dividend-oriented company which owns, acquires and operates stable revenue generating solar power plants. It will adopt a high dividend payout policy to distribute a substantial portion of its cash flow as dividend and will be valued on a distribution yield basis, Xinyi Solar explained previously.
Xinyi Energy holds and operates a portfolio of 954 MW of utility-scale ground-mounted solar farms in China and is to acquire 540 MW more with the IPO proceeds.
(HKD 10 = USD 1.28/EUR 1.14)