China Hydro eyes US$187 million in initial public offering

China Hydroelectric Corp., a Cayman Islands-registered power investor, is seeking to list itself on London’s AIM market through an initial public offering that could raise a net US$187 million, its prospectus shows.

The prospectus said the company’s strategy is to acquire hydropower assets and develop new hydro projects in China, the world’s second largest energy market. China Hydroelectric said it has an experienced Sino-American management team and hopes to capitalize on China’s strong power demand and opportunities brought about by the government’s policy to encourage private investment in the hydropower sector.

The company plans to offer 34 million units at US$6 each, raising US$204 million in total before various expenses, including fees to be paid to share placing agents. Each unit consists of one share and two warrants that would trade separately following the listing, the recently issued preliminary prospectus said. Each of the four-year warrants is exercisable for one share at US$5 each.

The share issue, run by investment banks Morgan Joseph and Seymour Pierce, would expand the company’s total share capital to 42.5 million shares from 8.5 million shares, it said.

However, a table on the London Stock Exchange’s Internet site regarding new issues showed the size of the China Hydroelectric offer would be US$104 million. It was unclear whether the information was updated. Company officials were not available for comment.

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