Huaneng Renewables returns with scaled-down IPO

Huaneng Renewables is returning to the market today with a scaled-down deal after calling off a Hong Kong initial public offering in December last year.

According to sources, the wind power unit of China’s largest power producer, China Huaneng Group, is aiming to raise between HK$5.68 billion and HK$7.42 billion $728 million to $951 million, which compares with a target of up to $1.3 billion six months ago.

The smaller deal size is a result both of a lower valuation and a weaker profit forecast for this year. At the same time, analysts argue that the outlook for the wind power industry in China...