China cleantech firm slashes HK IPO target to $340 mln

China diversified clean-energy firm Huadian Fuxin Energy Corp has cut the size of its planned Hong Kong initial public offering by nearly two-thirds to USD340 million, underscoring a weak global economic environment and tepid demand for new listings, Reuters reported late today.

Huadian Fuxin plans to raise up to USD340 million from its IPO, according to a term sheet seen by Reuters on Monday, which if completed would be among Asia's bigger new listings so far this year. It was previously aiming to raise about USD940 million.

Huadian Fuxin, which is 85.8 percent owned by state-owned power utility China Huadian Corp, has set a HKD1.60-1.76 per share price range for the offer, the term sheet showed.

The company will offer 1.5 billion new shares in the base deal, with another 225 million in the over-allotment option that could lift the IPO size to USD391 million.

Huadian Fuxin will use 30 percent of the proceeds to buy wind turbines, gas turbines and other equipment, and 20 percent to repay short-term borrowings, the terms showed.