GCL-Poly Energy aims for HK$1.2b to buy plants, upgrade production

GCL-Poly Energy Holdings, one of the largest cogeneration plant operators on the mainland, will start selling shares to the public tomorrow to raise as much as HK$1.18 billion to pay for new plant acquisitions and upgrades of existing facilities.

The company, 21 per cent owned by Hong Kong-listed Poly (Hong Kong) Investments, is selling 288 million shares at between HK$3.30 and HK$4.10 each, according to sources who attended the investor presentation yesterday.

Assuming an offer price of HK$4.10, the company can raise net proceeds of up to HK$1.18 billion.

The offering represents 28.97 per cent to 29.63 per cent of the company's enlarged share capital. Morgan Stanley is the sole lead manager and CCB International is a joint sponsor.

GCL-Poly Energy may increase the size of the offering to 331.2 million shares if demand warrants. The additional 43.2 million shares will be sold by MS China 3, a shareholder of the company. The share sale will close on November 6, with trading scheduled to start on November 13.

The company, which develops and operates cogeneration plants in Jiangsu and Zhejiang provinces, owns 10 power plants and had minority interests in five cogeneration power plants with a total attributable installed capacity of 464.26 megawatt-hours (MWh) as of April.