Sinovel flies IPO, but shares slow on debut

摘要

China's number one wind producer Sinovel kicked off the year with its IPO in Shanghai marking the exchange's first major listing of 2011. By setting its offer price at launch at the top end of the RMB80-90/share (US$12.35-13.69/share) range the company amassed RMB9.5 billion ($1.4 billion) in its 13 January listing. The world's third largest wind turbine manufacturer, which launched its products in 2005, offered 105.1 million shares in the listing, riding on the appetite for wind power in China - which is now the world's largest installed wind capacity market with 41.8 GW by end-2010. Funds raised in the IPO will be used to expand the company's installed capacity and for research and development, it said.Despite the good pre-listing environment, shares in the company slid nearly 10% to the lower end of the forecast range at RMB81.31/share ($12.36/share) against its listing price when it debuted, but Sinovel investors were said to be unperturbed. A slowing annual growth rate in the Chinese wind sector to 20% in 2011 from about 25% in 2010 was said by some to be taking its toll.Other Chinese wind manufacturers are unlikely to be deterred from listing in the future, however. Wind sector financing demand remains high, said analysts, and more IPOs can be expected.