Sinovel Wind Group, one of the largest wind turbine producers in China, plans to raise Rmb9.4 billion $1.4 billion from one of the most expensive IPOs in Shanghai, taking advantage of Beijing’s efforts to promote renewable energy.
However, the deal -- the first major one this year -- will test the Shanghai equity market, whose stock index was among the world's worst performers in 2010. Sinovel is offering its shares at a price between Rmb80 and Rmb90 apiece, which translates into a price-to-earnings PE ratio of 38.8 to 43.7 times, based on the company’s 2009 earnings. By comparison, Shanghai-listed stocks are trading at PEs of 20 to 30 times on average....
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