Will Datang and Huaneng Renewable Energy IPOs Fail like other Green Utilities in 2010

Giant Chinese Utilities Datang and Huaneng are doing roadshows for the IPOs of their Renewable Energy Arms which would raise more than Billion Dollars Each.Note Green Utilities have become a separate Green Investment Class with lots of Asian and European Utilities already doing an IPO of their Green Subsidiaries or are in the process of doing so.However 2010 has been a bad year for Green Energy Stocks and Green Utilities have been no different.While First Wind Holdings a pure play USA Wind Farm Developer failed to get listed despite lowering its Issue Price,Indian Orient Green Power and Italian Enel Green Power have performed miserably even after listing at a much lowered stock price.Note the current market has hit an air pocket with Irish Sovereign Debt Worries and Chinese Inflation Concerns.Despite the negative sentiment towards Green Utilities mainly due to the Headwinds being faced by Wind Industry in 2010,Green Utilities are one of the safest ways to invest in the Alternative Energy Sector given the nascent highly volatile nature of the industry.

Note China has shown a tremendous expansion in its Wind Energy Capacity with 13 GW installed in 2009 and around 17 GW or 50% of the world’s Global Wind Installation expected this year.China’s Growth in Wind Energy will continue to be very strong with Major Global Wind Turbine Players looking towards China to offset the declining demand in Europe.Longyuan which is one of the Big 5 Chinese Utilities did a successful IPO of its Renewable Arm in Dec 2009 and Datang,Huaneng would be hoping for a similar encore.Note Chinese WTG Companies have also been raising in the stock markets with Goldwind and Ming Yang Power recently doing an IPO in Hong Kong and USA  respectively.

Chinese wind power producers plan Hong Kong IPOs

Two of China’s top power producers plan to raise 2.5 billion US dollars by listing their wind-power units in Hong Kong, reports said Tuesday, the latest among several green firms to list in the city.

Huaneng Renewables, a unit of major power producer China Huaneng Group, plans to raise 1.5 billion US dollars ahead of a listing on December 16, the Wall Street Journal reported, citing a term sheet for the deal.

China Datang Corp. Renewable Power, a unit of China Datang Corp, plans to raise one billion US dollars before its December 9 listing, the Journal said.

Both companies began pre-marketing the deals Monday and plan to price their offerings in early December.

Huaneng Renewables, which plans to sell 2.49 billion shares, will use the proceeds to expand its wind power business, repay bank loans and acquire wind power projects in China and overseas, the report said.

Datang Corp.’s subsidiary, which aims to sell 2.14 billion shares, plans to use the cash to fund wind power projects in Inner Mongolia, repay bank loans and purchase wind turbines.