Brazilian Arm of China Three Gorges Withdraws from IPO

The Brazilian unit of power company China Three Gorges Corp withdrew from an initial public offering in the Brazilian stock exchange.

The withdrawal occurred in early May, the regulator said, but the information was only updated in its systems on Friday, a filing from the securities regulator CVM showed.

The firm filed for an IPO last November and intended to use its proceeds to pay dividends to shareholders and invest in new renewable energy projects.

Brazil unit of China Three Gorges to file for USD 1 billion IPO

Brazil is a “priority country” in the Chinese company´s international growth strategy. Since 2013, the state-owned company has been investing in renewable energy assets in Brazil, including wind and solar power, and has become the second largest private power generator in the country.

In 2016, it acquired Duke Energy Corp.’s Brazilian assets, which included about 10 hydroelectric plants, for USD 1.2 billion.

Three Gorges has remained an active buyer in recent years, despite increased scrutiny of Chinese investments abroad. The subsidiary China Three Gorges Renewables Group Co. raised 22.7 billion yuan (USD 3.6 billion) in an IPO in Shanghai in June 2022.

 

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