China Three Gorges Renewables Group surged 44 per cent, the daily limit, in its trading debut as investors sought to gain from the country's push toward cleaner energy.
The unit of China Three Gorges Corporation saw its shares climb to as high as 3.82 yuan apiece on the Shanghai stock exchange in early trading yesterday, from its initial public offering (IPO) price of 2.65 yuan.
China Three Gorges' listing, the year's biggest in China, has been eagerly awaited. It raised 22.7 billion yuan (S$4.7 billion) in an offering last month that was 78 times oversubscribed.
The company said proceeds from the offering would be used to help fund offshore wind power projects and replenish liquidity.
The parent is the world's largest hydropower firm, and its renewables unit's total assets are valued at more than 140 billion yuan, according to the company's website.
The listing comes amid a concerted push for renewable energy in Asia's largest economy.
China's aim to reach peak carbon emissions by 2030 and carbon neutrality by 2060 has fuelled a surge in installations of wind and solar capacity. Still, challenges in the wind sector include rising domestic competition and the lapsing of subsidies that have helped accelerate the industry's growth.
"The open reflects the investor appetite that we are seeing for new energy stocks... which have a very positive outlook," said Emperor Securities research director Stanley Chan.
"Environmental, social and corporate governance stocks will be the main trend for the next decade."
China Three Gorges Renewables joins a spate of other energy companies going public recently.
China Three Gorges announced this week that it has completed the construction of China's first floating offshore wind project.
Prior to trading, S&P Global Ratings said the China Three Gorges Renewables listing supported a "stable outlook" on the firm and that it is credit positive.