CGN Power Co., China’s largest nuclear power producer, has launched an initial public offering (IPO) in Hong Kong worth up to US$3.2 billion, the first of several big listings set to make for a busy end to 2014 in Asia Pacific equity capital markets.

    In a plan to raise funds to expand its generating capacity, CGN Power is offering 8.82 billion new shares in an indicative range of HK$2.43 to HK$2.78 each, according to a term sheet of the deal seen yesterday. That would value the IPO at up to HK$24.52 billion (US$3.16 billion).

    At the top of its range, the deal would be the second largest in the region so far this year after a US$4.9 billion IPO by state-owned health insurer Medibank Private Ltd. in Australia.

    It comes ahead of an expected US$6 billion Hong Kong listing by shopping mall developer Dalian Wanda Commercial Properties Co., and a US$2 billion sale in Thailand by broadband infrastructure firm Jasmine International PCL.

    Companies have raised US$51.2 billion in IPOs so far in 2014, according to Thomson Reuters data. That represents a 42 percent surge from the same period last year, because of increased activity in Australia and as new listings resumed on the mainland.

    CGN Power could not immediately be reached for comment. According to the term sheet, its IPO is expected to be priced Dec. 3, with a debut on the Hong Kong stock exchange slated for Dec. 10.

    The firm aims to use the funds to expand installed capacity with nine new power generating units. It also plans to increase its stake in a nuclear power station controlled by its parent, China General Nuclear Power Corp.

    The firm is looking to benefit from China’s efforts to curb pollution by diversifying its energy generation away from fossil fuels, according to the draft IPO prospectus. It posted profit attributable to shareholders of 4.19 billion yuan (US$684 million) in 2013 on sales of 17.4 billion yuan. (SD-Agencies)