SHANGHAI — The largest Asian wind power generator, Longyuan Power Group, and the biggest Chinese shipbuilder, China Shipping Industry, plan to raise about $2 billion each as they priced their initial public offerings in Hong Kong and Shanghai on Friday, testing investors’ appetites, which have been strained by a glut of recent listings.
Chinese companies, from banks to travel agents, have rushed to list this year in Hong Kong and Shanghai to benefit from markets swollen with liquidity.
Longyuan is expected to raise $2.2 billion as it priced its Hong Kong offer at the top of an indicated range in one of the largest public offerings this year, people familiar with the deal said Friday.
The offer has attracted the interest of the sovereign wealth fund China Investment Corp.; a U.S. billionaire investor, Wilbur L. Ross Jr.; and China Life Insurance Group. All three bought in before the initial public offer, which appeals to investors hoping to tap the fast growing renewable energy sector.
China Shipping said Friday that it would raise up to $2.16 billion in an A-share listing, issuing up to two billion shares priced at 6.15 renminbi to 7.38 renminbi, or 90 cents to $1.08.
China Shipping is drawing strong investor interest and is expected to price at the high end of the range, or about 7 renminbi, analysts said, bolstered by market expectations of government help in the future for the shipping industry.
“There is a lot interest in this company, because their financial backers are very strong,” said Su Ming Le, an analyst at Bank of China International Securities.
China Shipping said it needed $937 million to expand production capacity, and it appointed China International Capital Corp. as the offer’s lead underwriter.
Initial public offers in Asia have led global rankings this year, accounting for about two-thirds of the $42 billion in proceeds in the top 10 offerings worldwide.
But some recent listings, like the casino Sands China, have performed weakly, affected by market volatility over Dubai’s debt problems.
A company like Longyuan, a major subsidiary of China Guodian Corp., is expected to hold its appeal, analysts said.
“Longyuan has its unique position as it is the largest wind power generator in China and is supported by government policy,” said Antonny Cheng, managing director at Gain Asset Management.
Hong Kong-listed shares of the smaller wind power generators China Windpower and CP New Energy have soared 369 percent and 188 percent this year, respectively. Longyuan had a 24 percent share of China’s wind power market in terms of total installed capacity as of the end of 2008.
China aims to increase wind-generated power with investments possibly worth over $150 billion, which could make it the world leader in wind energy.
Meanwhile, the Singaporean budget carrier Tiger Airways, 49 percent owned by Singapore Airlines, is planning an I.P.O. early next year. The offer aims to raise several hundred million dollars to help finance the purchase of 50 Airbus A320s that Tiger has ordered.
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