What’s new: Share price of China Southern Power Grid Energy Efficiency and Clean Energy Co. Ltd., rose by its daily limit for a second day of trading on the Shenzhen Stock Exchange to 2.22 yuan ($0.34).
The company, specializing in providing energy-saving services to help clients cut emissions, issued 1.47 billion new shares in the initial public offering, which represents one-fifth of the company’s total shares, and raised 1.06 billion yuan, according to the company’s prospectus filed to the Shenzhen bourse.
The takings will be used for the expansion of energy-saving projects in areas such as lighting and construction.
What’s the background: The company is a subsidiary of China Southern Power Grid Co. Ltd., which remains its leading shareholder after the listing with a 60.82% stake. China Southern Power Grid is one of the country’s two power giants operating the nationwide power grid.
The newly listed company made 280 million yuan in the first three quarters of 2020, up by 39.2% year-on-year. It predicted yearly profit in the range of 360 million yuan to 390 million yuan.
Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)
