(ECNS) -- Nuclear giant China National Nuclear Power Co., Ltd. (CNNP) plans to raise more than 16.25 billion yuan ($2.6 billion) in an initial public offering to fund nuclear-power projects as it undergoes a review process by the securities regulator.
Once approved by China Securities Regulatory Commission, CNNP plans to issue no more than 3.65 billion shares in the A-share market, which will make it the first nuclear firm to go public, China Economic Net reports.
Of the planned 16.25 billion yuan to be raised through the IPO, 9.2 billion shall facilitate the construction of ten nuclear plants along China's coastline, while the remaining 7.05 billion will be used to strengthen CNNP's cash flow.
"The market is becoming more endurable as IPOs become more common," said Zheng Hong, a chief consultant for Datong Security.
"In the meantime, foreign capital streams into China as overseas investors retain a high expectation on the Chinese stock market, which also receives some money thanks to a lower interest rate. Therefore, the abundance of capital increases market endurance."
It is estimated that CNNP has a chance to be the first company to hit the 16 billion yuan mark in four years.
Insiders also say China's nuclear industry is entering a period of rapid development due to government support and planned export to other countries.
