China National Nuclear shares jump in Shanghai debut after biggest IPO since 2011

SHANGHAI - Shares in China National Nuclear Power Co Ltd (CNNPC) jumped at open in their Shanghai debut on Wednesday after raising $2.1 billion (S$2.84 billion) in the country's largest initial public offering (IPO) since 2011.

Shares of CNNPC, a unit of one of the country's two state nuclear reactor builders, opened at 4.1 yuan, up a maximum-allowed 20 percent from their IPO price of 3.39 yuan.

The company raised 13.19 billion yuan ($2.87 billion) in its IPO. In a reflection of strong demand, it attracted $273 billion in total bids from investors. China's stock market has more than doubled since November when the central bank lowered interest rates to support a slowing economy. Demand has also been spurred by the launch of the Shanghai-Hong Kong stock connect scheme.

The firm had been planning an IPO since 2012 and will use some of the proceeds to fund the construction of the world's first Westinghouse AP1000 reactor, which has been repeatedly delayed.

The raised funds will also help CNNPC with a domestic reactor building programme which it hopes will be a springboard into the international market.

The underwriters for the deal are CITIC Securities Co Ltd , UBS and China Securities.

CNNPC is a unit of China National Nuclear Corp (CNNC) which invests, builds and operates domestic nuclear power plants. It has 12 subsidiaries in different regions.

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