China General Nuclear Power Corporation (CGN Power) (01816. HK), has started its A-share listing procedures.
On the evening of Feb. 11, CGN Power said in an announcement at the Hong Kong Stock Exchange that the board of directors had already approved a proposal to be listed on the Shenzhen Stock Exchange.
In line with the regulatory requirements, the number of A-shares issued by the company shall not exceed 5,049,861,100, which is equivalent to 10 percent of the total share capital released by the company. This issuance adopts the way of issuing all new shares.
After deducting the issuance costs, the funds raised through the A-shares issue will be used for Yangjiang No. 5, No. 6 and Fangcheng Port No. 3, No. 4 and other nuclear power units constructions and additional supplementary liquidity. When the project is completed and put into production, the total installed capacity of the nuclear power units will be increased by 4,532 MW.
The lengthy construction cycle of a nuclear power and the enormous amount of funds required are the fundamental impetus for the nuclear power group to engage in the capital market actively.
Usually, a nuclear power project takes 10 or 15 years to complete and put into production. The investments are enormous, amid which 20 percent of the capital is shareholder capital, and 80 percent relies on bank loans.
The CGN Power was listed on the Hong Kong Stock Exchange on December 10, 2014, as the world's first pure nuclear power generation company.
The profitability of nuclear power plants mainly depends on the project costs, grid price, utilization hours and other aspects, the utilization of nuclear power units is a crucial factor affecting the operating performance and profitability of the listed nuclear power companies.
In terms of the scale of its assets, CGN Power is currently operating 20 units, 8 units are under construction, and 137.7 billion degrees of on-grid energy generated by the nuclear power units were under its operations and management in 2017.
The notice also said that the proposal mentioned above will be submitted to the interim shareholders' general meeting for approval.
Besides, it also needs the approval of the China Securities Regulatory Commission (CSRC) and other relevant regulators.