Energy
China's wind power blows to US stock market
By Zhang Yuwei (chinadaily.com.cn)
Updated: 2010-10-03 17:02
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China Ming Yang banners on the facade of the New York Stock Exchange to celebrate the company's initial public offering and first day of trading. [Photo/ China Daily] |
NEW YORK - Ming Yang Wind Power Group Ltd, a Guangdong-based wind power turbine manufacturer, priced its initial public offering (IPO) of 25 million American Depositary Shares (ADSs) at $14 per ADS on Oct 1, becoming the first Chinese wind energy company to list its shares in the US stock exchange.
The company started trading on the New York Stock Exchange (NYSE) the same day under the ticker "MY". It opened at $14.15, but fell to $13.25, 5.4 percent below the IPO price.
According to an NYSE source, the offering came after a number of Chinese companies priced their IPOs including China's SouFun Holdings Ltd (a Beijing- based real estate Internet portal) and Country Style Cooking Restaurant Chain Co (A Chinese quick service restaurant chain), both priced in September. And Ming Yang is the only non state-owned company in wind power business on NYSE.
The company raised $350 million IPO proceeds to develop wind turbines and is focusing on the R&D. Morgan Stanley, Credit Suisse and BofA Merrill Lynch are acting as joint bookrunners for the offering, according to the company's press release.
Ming Yang, a leading and fast-growing wind turbine producer, focuses on designing, manufacturing, selling and servicing megawatt-class wind turbines, according to Zhang Chuanwei, CEO of the company.
As the largest non State-owned winder power turbine maker, the company's key customers include the five largest State-owned power producers in China, with an aggregate installed capacity accounting for more than 50 percent of China's newly installed capacity in 2009.
China has developed rapidly in wind power industry in the world in the past ten years, Zhang told China Daily, adding that the market is still growing which presents increasing opportunities for wind turbine makers like his company.
"Wind power in China accounted for about 25 gW of electricity generating capacity at the end of 2009, and it aims to reach 150 gW by 2020," he said.
After the IPO, the company plans to tap into international market and top the list of turbine manufactures in the coming three years, said Zhang, adding that the company set up an office in Dallas in May to develop its US market.
Sharing his vision, Zhang said they saw the trend and potential in this field in 2006 and thought they must seize the opportunity to start the turbine making business.
He added that that China has provided a good environment for wind power business in terms of resources and policy.
The Chinese government has recently strengthened its support to renewable energy by amending its Renewable Energy Law, which came into effect in January 2006, and requiring the energy companies to purchase all the electricity produced by the renewable energy sector.
Last month, the State Council approved the Decision to Speed up Cultivating and Developing Strategic Emerging Industries, listing industrial sectors including energy conservation and new energies for policy support.
According to the China Academy of Meteorological Sciences, China possesses a total 235 gW of practical onshore wind power potential that can be utilized at 10 meters above the ground.
In 2009, China overtook Germany as a country with the second largest installed wind power capacity, after the United States, according to the China Wind Energy Association.
"Compared to other European turbine makers, Ming Yang not only produces standard products but also makes customized ones and this gives us the advantage to compete with them," Zhang noted.