Chinese waste-to-energy operator seeks SGX listing

The Songyuan Xinxiang waste-to- energy facility is one of 16 in China operated by China Jinjiang Environment.
The Songyuan Xinxiang waste-to- energy facility is one of 16 in China operated by China Jinjiang Environment. PHOTO: CHINA JINJIANG ENVIRONMENT

China Jinjiang's IPO has a public tranche of 4.6 million shares at 90 cents each

A waste-to-energy operator in China has unveiled its initial public offering (IPO) for a listing on the Singapore Exchange (SGX) mainboard.

China Jinjiang Environment's IPO launched yesterday consists of an international placement tranche of 87.7 million shares and a public offer of 4.6 million shares at 90 cents each.

The firm, which operates the largest waste-treatment services in China, has an option to issue up to 13.8 million additional shares.

China Jinjiang Environment has entered into agreements with cornerstone investors to take up 112.4 million shares separately from the IPO. These include Zhejiang United Investment (HK), HFI International (HK) and CHINT Hong Kong American Investment.

The firm hopes to raise net proceeds of $173 million if the over-allotment option is not exercised, and up to $185.1 million if it is activated.

China Jinjiang Environment plans to use some of the funds to acquire Zhejiang Zhuji Bafang Thermal Power Company and Wenling Green New Energy Company.

The proceeds have also been earmarked for upgrading work at its facilities, for working capital and to repay borrowings.

The company operates 16 waste-to-energy facilities in China with a total waste-treatment capacity of 22,830 tonnes per day.

An additional four facilities are under construction while 12 are in the preparatory stage.

Since 2014, the company has been providing energy management contracting services to firms in the metallurgical, chemical and power-generation industries.

China Jinjiang Environment achieved a total revenue of 1.64 billion yuan in 2013, 1.43 billion yuan in 2014 and 1.58 billion yuan (S$321 million) in 2015.

The company registered a gross profit margin of 35.7 per cent in the 2013 financial year, 48.9 per cent in 2014 and 47 per cent in 2015.

Ms Wang Yuanluo, executive chairman and chief executive officer of China Jinjiang Environment, said: "We believe that a listing on the SGX will further enhance our brand image and recognition, and provide us with a platform to expand our business internationally, especially with a focus on Southeast Asia."

The public offer closes at noon on Aug 1, with trading expected to start on Aug 3.

A version of this article appeared in the print edition of The Straits Times on July 27, 2016, with the headline 'Chinese waste-to-energy operator seeks SGX listing'. Print Edition | Subscribe