China Resources New Energy draws $943 billion in retail bids for biggest Shenzhen IPO (updated)

China Resources Power Holdings Co

Today 11:08

Adds more details from filing throughout
By Yantoultra Ngui

    SINGAPORE, June 23 (Reuters) - China Resources New Energy's 001248.SZ Shenzhen IPO drew about 6.4 trillion yuan ($943.2 billion) in bids from retail investors, a filing showed on Tuesday, as demand for the public tranche topped 1,000 times the shares first on offer.
The strong retail demand highlights appetite for one of China's largest recent listings. The China Resources Power 0836.HK unit priced the IPO at 10.11 yuan a share, putting it on course to raise up to 24.5 billion yuan if an overallotment option is fully used.
That would make the deal Shenzhen's biggest IPO on record, surpassing Yihai Kerry Arawana's 13.9 billion yuan listing in 2020, according to LSEG data as of last week. 
It would also be China's largest domestic IPO since the Beijing-Shanghai High-Speed Railway raised 30.7 billion yuan in Shanghai in 2009.
Retail investors placed valid bids for 636 billion shares, Tuesday's filing showed, worth about 6.4 trillion yuan at the IPO price.
The IPO initially set aside half the shares for strategic investors, with 70% of the balance allocated to institutional investors and 30% to retail buyers. 
Heavy retail demand triggered a clawback mechanism reshuffling that allocation, lifting the final retail tranche to 930.7 million shares, or 67.95% of the shares left after the strategic placement, assuming the overallotment option is fully exercised.
After the reallocation, the retail tranche was subscribed 683.4 times, the filing showed.
The company and its underwriters held the share allocation draw on Tuesday and will publish the results on Wednesday, the filing showed. The filing did not give a debut trading date.   
($1 = 6.7857 Chinese yuan renminbi)

 (Reporting by Yantoultra Ngui. Editing by Mark Potter and Jan Harvey)
 ((Yantoultra.Ngui@thomsonreuters.com;))