China General Nuclear Power, the country's largest nuclear power producer, has filed for an initial public offering in Hong Kong reportedly worth $2 billion. Bank of America Merrill Lynch, China International Capital Corp and ABC International - the investment arm of Agricultural Bank of China - are all joint sponsors of the listing which still needs approval. The Shenzhen-based company filed the documents on Wednesday with no indication when the IPO - worth $2 billion according to the Dow Jones Newswires - might take place.
CGN currently generates around 9.4 gigawatts - around half of China's nuclear energy output, the documents state. A further eleven power units at three nuclear power stations are in the construction phase. The power provider recorded a 5 billion yuan (US $810 million) profit in 2013, a two percent rise from the previous year, according to the preliminary prospectus. It also has a string of partnerships with international energy companies, including France's EDF and Areva. The world's second largest economy is desperate to wean itself of its dependency on pollution causing coal and regards nuclear as a key area for energy expansion.
There are currently 21 operational nuclear reactors in China, which has ambitious plans to expand its nuclear industry, with 27 reactors under construction near coastal areas, according to the World Nuclear Association. Beijing is also keen to export its own nuclear expertise abroad. In the last two months alone, Chinese nuclear companies have announced partnership deals to build new reactors in Argentina and Romania. Earlier this year China also won the right to own and operate new nuclear power stations in Britain.