Wind turbine maker floats shares on NYSE

By Zhang Yuwei (China Daily)
Updated: 2010-10-04 07:38
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NEW YORK - Ming Yang Wind Power Group Ltd, a Guangdong-based wind turbine manufacturer, priced its initial public offering (IPO) of 25 million American Depositary Shares (ADSs) at $14 a share on Friday, becoming the first Chinese wind energy company to list on the New York Stock Exchange (NYSE).

The company started trading the same day under the ticker 'MY'. It opened at $14.15, but fell to $13.25, 5.4 percent below its IPO price.

Morgan Stanley, Credit Suisse and Bank of America-Merrill Lynch acted as joint book-runners for the offering, according to a company press release.

Other Chinese firms to list on the NYSE in September include SouFun Holdings Ltd, a Beijing-based real estate Internet portal, and Country Style Cooking Restaurant Chain Co, a Chongqing-based fast-food chain.

Ming Yang is the only Chinese private owned wind power maker listed on the NYSE.

The company raised $350 million through the float, and the money will be used for capital expenditure as well as in research and development efforts, said Zhang Chuanwei, chief executive officer of the company.

China's wind power industry has developed rapidly over the past 10 years. As the largest non State-owned wind energy firm, the company's key customers include the five largest State-owned power producers in China, with an aggregate installed capacity accounting for more than 50 percent of the nation's newly installed capacity in 2009.

Zhang said the booming market has increased opportunities for wind turbine manufacturers including Ming Yang.

"Wind power in China accounted for about 25 gigawatts (GW) of electricity generating capacity at the end of 2009, and the target is 150 GW by 2020," he said.

After the IPO, the company plans to tap into the international market and top the list of wind turbine manufacturers in the next three years, said Zhang.

In May, the company set up an office in Dallas to focus on the US market.

Ming Yang started developing large-scale wind power turbines in 2006, and has already become a key global manufacturer, he said.

"Compared to other European turbine makers, Ming Yang also makes customized turbines, and this gives us an advantage when competing with them," Zhang said.

In 2009, China overtook Germany to become the country with the second-largest installed wind power capacity after the United States, according to the China Wind Energy Association.

Zhang said the Chinese government had provided a solid environment for the wind power business, both in terms of resources and policy.

The government recently beefed up its support to the renewable energy sector by amending its Renewable Energy Law, which came into effect in January 2006.

As per the amendment, all energy companies in China are required to purchase the entire electricity generated by the renewable energy sector.

With the country's large land mass and long coastline, China has exceptional wind resources, which implies huge potential for wind turbine makers.

According to the Chinese Academy of Meteorological Sciences, China possesses a total 235 GW of practical onshore wind power potential that can be utilized 10 meters above ground level.

Ming Yang is focused on designing, manufacturing, selling and servicing megawatt-class wind turbines.

China Daily

(China Daily 10/04/2010 page4)