Nov. 25, 2009 (China Knowledge) - Tycoon Lee Shau-kee, chairman of Henderson Land Development Co Ltd<0012> has spent US$100 million to subscribe for shares offered by mainland wind power project developer China Longyuan Power Group Corp in its Hong Kong initial public offering, sources reported.
Beijing-based Longyuan Power expects to raise as much as HK$17.4 billion by selling 2.14 billion new shares at prices between HK$6.26 and HK$8.16. The pre-marketing started on Nov. 23. The proceeds from the share offering will be used to repay bank loans, finance the construction of new production facilities and upgrade existing facilities, the company said in its prospectus.
Morgan Stanley and USB AG are the joint book runners of the IPO. The company is set to list on the bourse on Dec. 10.
Longyuan Power, which is a subsidiary of state-owned China Guodian Crop and is responsible for Guodian's renewable energy assets, expects to post RMB 886 million in net profit for 2009, according to the firm's prospectus.
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