China Hydroelectric seeks $200M IPO

China Hydroelectric has filed paperwork for a $200 million IPO on the Hong Kong Exchanges and Clearing Limited, according to a report today in the South China Morning Post.

The U.S.-based firm was founded in 2006 in Hong Kong to buy and operate hydropower projects in mainland China, responding to 2006 government mandates for renewable energy and requirements for utilities to buy all available hydropower.

Coal-fired power plants account for about 75 percent of mainland China's power generation. However, hydropower has a growing presence in China, accounting for 16.4 percent of the energy output in 2008.

Government mandates call for 300 gigawatts of hydroelectric power by 2020—triple the amount at the end of 2007.

China Hydroelectric filed the IPO application in January, with Deutsche Bank and Merrill Lynch in charge of the share sale.

The newspaper said such applications are usually sent to the exchange's listing committee within three months. The company could then decide on timing of the IPO depending on factors including market conditions.

The newspaper cited an anonymous source that said China Hydroelectric filed to go public in the U.S. last year but dropped its plans.

In 2008, dealflow and the amount of capital raised in IPOs plummeted, with clean technology companies raising an estimated $5.3 billion in 17 IPOs (see Record 2008 for cleantech with $8.4B in investments). Although markets are still unsteady, some companies have decided to go public anyway (see Newly Nasdaq-listed SmartHeat inks China waste-heat deal).

China Hydroelectric raised $251 million through privately placed shares last year. The newspaper said Merrill Lynch invested $70 million, but it was unclear if that was part of last year's tally.

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