China Huaneng Group Corp., plans to spin off its wind power unit in a $1 billion initial public offering later this year, according to a report in Bloomberg.
China Huaneng Group, based in Beijing, has hired Chinag International Capital Corp., Goldman Sachs, Macquarie Group and Morgan Stanley to put the IPO together, sources said.
A state-owned enterprise, China Huaneng Group is the country’s largest power producer. It has developed and operates more than 85 thermal and hydropower plants.
The company plans to bring the first 500 megawatts of its wind farm based in Jiuquan, Gansu Province early this year.
The deal would be the second major IPO in the last several months after the China Longyuan Power Group attracted $2.2 billion in investments, including $100 from American billionaire Wilbur L. Ross, in November.
China is hot on wind, more than doubling its capacity in 2009, according to the Global Wing Energy Council.
A Goldman Sachs research report released last week also speculated that the Chinese government would increase its 2020 target for wind power capacity to 150 gigawatts, from 100 gigawatts.