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UPDATE 1-China Yangtze Power opens unchanged after $1.83 billion London float

Fri, 25th Sep 2020 10:34

(Adds background, quotes)

By Abhinav Ramnarayan

LONDON, Sept 25 (Reuters) - China Yangtze Power
began its London debut unchanged at $26.46 per global
depositary receipt (GDR) on Friday after pricing a smaller than
expected $1.83 billion London listing overnight.

The Shanghai-listed company sold 69.1 million GDRs as part
of the listing at $26.46 each, representing about 3.1% of its
share capital in Shanghai.

Earlier this week, the company had said it would look to
sell 110 million global depositary receipts between $26.46 and
$30.95 apiece, suggesting a deal size of up to $3.4 billion.

But a drop in the share price in Shanghai crimped demand,
said one source familiar with the situation. Yangtze Power
shares fell over 5% in Shanghai in the last two sessions,
narrowing the implied discount on the GDRs.

Yangtze Power is the second company this year to make the
trip from Shanghai to London as part of a stock connect scheme
between Britain and China following China Pacific Insurance
earlier this year.

"The successful listing will help raise the group's profile
in the international capital markets and help it further develop
its overseas business," Lei Mingshan, chairman of Yangzte Power,
said in a statement.

Yangtze Power is the world's largest hydropower company with
a market capitalisation of $60.7 billion in Shanghai.

Goldman Sachs, UBS, Huatai Financial Holdings and CLSA are
global coordinators on the offering.
(Reporting by Abhinav Ramnarayan, editing by Karin Strohecker
and David Evans)

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