By Gina Lee
Investing.com – China Three Gorges Renewables Group Co. was up 44.15% in its on the Shanghai stock exchange as investors bet on gaining from China’s push toward cleaner energy.
Shares of the company surged up to 3.82 yuan apiece in early trading, surpassing its IPO price of 2.65 yuan.
The renewables unit of China Three Gorges Corp raised 22.7 billion yuan ($3.6 billion) in May, becoming the largest listing in 2021 so far in China. The parent company said proceeds from the listing would be used to invest in offshore wind power projects and replenish liquidity.
As the world’s largest hydropower company, the total assets of China Three Gorges Corp’s renewables unit are valued at more than 140 billion yuan, according to the company website.
The IPO comes as China is pushing for renewable energy, aiming to reach peak carbon emissions by 2030 and carbon neutrality by 2060.
“The open reflects the investor appetite that we are seeing for new energy stocks such as hydropower and wind power, which have a very positive outlook…ESG, social and environment stocks will be the main trend for the next decade,” Emperor Securities research director Stanley Chan told Bloomberg.
The listing follows a slew of other energy companies’ IPOs recently, including Shanghai Electric Wind Power Group’s 2.9 billion yuan offering in May, which is now trading 68% above its IPO price.
China Three Gorges said earlier this week that it had completed the construction of China’s first floating offshore wind project.
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