China's Wind Giant Xinjiang Goldwind Cancels Largest Green IPO of 2010

China’s Wind Turbine Producer Xinjiang Goldwind has apparently canceled plans for a massive $1.2 Billion Hong Kong IPO .The reasons for the cancellation of this much hyped IPO is not very clear . Note the Chinese Government has issued a “go slow” for Green IPOs given the overcapacity in the Wind and Polysilicon sectors.However Goldwind which is China’s 2nd largest Wind Turbine Producer and  5th largest in the world had got government approval for the HK offering.This IPO was crucial for Goldwind to raise funds for overseas expansion as the Chinese domestic market sees hypercompetition with a Price War between 60 players fighting for survival.

China is trying to create Clean Technology Champions like Sinovel and Goldwind which can compete in international markets with world class Production and Technology.Goldwind has been working on a HK IPO for the last 4-5 months with June 22nd fixed as the date of the HK offering.This IPO would have been the biggest Green IPO in the world in 2010 after wind farm operator Longyuan’s IPO on Dec 2009.Goldwind is already listed on the Shenzhen  stock exchange and the valuation of the IPO was supposed to be at a reasonable level.The first hint of trouble came after WSJ reported that Goldwind had cut IPO price by 8% . This coupled with the sharp decline in the Chinese market and volatility in the world markets due to the Greek Contagion might have given the Goldwind managment cold feet.The Greek Contagion has led to a slowdown in IPO’s all over the world with the Green Industry being severely affected.There have been reports that some European renewable energy infrastructure firms has also been forced to put their IPO’s into cold storage due to market uncertainty.Note the Green Energy sector is in a nascent stage and the need for capital is much greater relative to other mature industries.

China’s Goldwind pulls $1.2 bln Hong Kong IPO – Reuters

China’s second-largest wind turbine maker, Xinjiang Goldwind Science & Technology Co Ltd, has pulled its up to $1.2 billion Hong Kong initial public offering, a source involved with the deal said on Sunday.

Last month, Russia’s Strikeforce Mining & Resources, China Tian Yuan Mining Ltd and Swire Pacific’s (0019.HK: Quote) property arm shelved their IPO plans in Hong Kong.