Sept 23 (Reuters) - China Yangtze Power Co Ltd
on Wednesday launched a secondary London listing to raise up to
$3.4 billion, cementing a strong post-summer period for stock
market listings and providing a boost for financial ties between
Britain and China.
In what would be the biggest deal under a Shanghai-London
stock connect scheme, Yangtze Power said it plans to list 110
million global depositary receipts (GDRs) on the London Stock
Exchange between $26.46 and $30.95 apiece.
This sets the targeted proceeds at between $2.91 billion and
$3.40 billion. The deal is set to price on Wednesday and to list
on Thursday, one of the most rapid timetables for a stock market
"This deal has been in the works for a good while yet, but
it is encouraging that it is going ahead in spite of an
uncertain political backdrop," said a source familiar with the
matter. "Regular listings of this nature are going to help
financial ties between the countries."
In December last year, China blocked cross-border listings
between the Shanghai and London bourses because of political
tensions with Britain over the Hong Kong protests, sources told
Since then -- and especially in light of tensions with the
United States -- China has been keen to revive the scheme, and
China Pacific Insurance Co completed a $1.8 billion
secondary London listing in June.
The deal will also help bolster the European market for
stock market listings, which took a battering in the first half
of the year, but has come back strongly since summer.
The Hut Group completed a high-profile London
listing last week and a number of different IPOs are being
marketed across the continent.
Yangtze Power is the world's largest hydropower company with
a market capitalisation of $64.9 billion in Shanghai.
Goldman Sachs, UBS, Huatai Financial Holdings and CLSA are
global coordinators on the offering.
(Reporting by Muvija M; editing by Jason Neely and Bernadette