China Resources Power proposes spin-off, raising RMB24.5B via A-share listing

China Resources Power (00836.HK) proposed spinning off its wholly owned renewable energy unit for an A-share listing on the Shenzhen Stock Exchange, raising RMB24.5 billion through the sale of as many as 2.42 billion new shares.

"The total proceeds of RMB24.5 billion raised are expected to be mainly applied to renewable energy base projects, multi-energy complementarity and integration projects, green ecological development and integrated development-oriented renewable energy projects," the company said in a filing.

The spin-off vehicle, China Resources New Energy Holdings, will offer 2.107 billion new shares representing 16.2% of its enlarged share capital, or 2.423 billion shares including a full exercise of the overallotment option for 18.19%. The unit operates wind and photovoltaic power stations across 31 Chinese provinces, with on-grid installed capacity of 27,630.7 megawatts for wind and 13,959.2 megawatts for solar as of Dec. 31.

The listing unlocks a valuation premium for China Resources Power's renewable assets by tapping the A-share market, where clean energy stocks typically command higher multiples than Hong Kong-listed utility peers. Post-listing, the parent's control will decrease from 100% to as low as 81.81%, while the RMB24.5 billion in proceeds will fund an aggressive expansion of the unit's renewable energy portfolio.

China Resources New Energy is one of the country's largest renewable power operators, with a combined 41.6 gigawatts of on-grid wind and solar capacity. Its business spans investment, development, operation and management of wind and photovoltaic stations, selling electricity as its principal product across all mainland provinces.

The company did not disclose the offer price, listing date or cornerstone investors. The spin-off remains subject to shareholder and regulatory approvals, including clearance from the SFC and China's securities regulators.

The deal gives China Resources New Energy a war chest to scale its renewable portfolio at a time when China's clean energy buildout is accelerating under national decarbonization targets. Investors will watch for the pricing range and cornerstone lineup, which will signal institutional demand for the A-share listing and set a valuation benchmark for the sector.

This article is for informational purposes only and does not constitute investment advice.