Institutional investors have so far bid for two to three times the $330 million in shares being sold in an IPO by China Power, a unit of China's largest power generation group, sources close to the deal said on Sunday.
While government moves to cool economic growth have hit demand for Chinese IPOs, institutional bids would cover the share sale by China Power International Development Ltd, the sources said.
"We don't expect the deal to be over 20 times covered, given the current sentiment. But two to three times is quite good given that the New York marketing hasn't started yet," one source said.
Chinese power companies are raising funds to build capacity as the country, the world's second-biggest electricity user, suffers its worst power shortage in decades.
China Power, a unit of China Power Investment Corp Group (CPI Group), is seeking $330 million to help it meet a goal of doubling capacity by next year.
The state-controlled firm said on Sunday it may issue more shares at some future date to fund purchases.
China Power will open its Hong Kong public offering from Monday until Thursday. Dealings in the shares are expected to begin on October 15 under the stock code "2380".