Demand for Three Gorges IPO staggering

Yangtze Electric Power Co, the company spearheading China's massive Three Gorges Dam hydroelectric project, had hoped to raise around US$1.19 billion from an IPO to help fund the $25 billion power undertaking.
Demand for Three Gorges IPO staggering Demand for Three Gorges IPO staggering Demand for Three Gorges IPO staggering Demand for Three Gorges IPO staggering Demand for Three Gorges IPO staggering

What it got instead was enough interest to fund the entire project with the IPO becoming the country's largest share offering this year. The company had offered 2.326 billion shares (29.61% of its expanded capital) but it received applications for 89.2 billion shares.

Analysts had predicted a strong response based upon rising demands for power (up to 16%), however, demand has been fuelled by an estimated pool of US$1.3 trillion in savings within the country and no avenue for investment nor a stock exchange with much to invest in.

The Three Gorges IPO is officially the fourth-largest issue of shares in China after the IPOs of Sinopec, China Unicorn and China Merchants Bank.

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