China Resources New Energy - Shenzhen's biggest IPO

China Resources New Energy's recent initial public offering (IPO) on the Shenzhen Stock Exchange attracted about 6.4 trillion yuan ($943.2 billion) from retail investors, according to a filing published last week, with demand for the public offering exceeding 1,000 times the number of shares initially offered, Reuters reported.

The strong demand from retail investors underscores the interest in one of China's largest recent listings. China Resources Power has priced the IPO at 10.11 yuan per share, and could raise up to 24.5 billion yuan if the over-allotment option is fully exercised.

The deal would make it the largest initial public offering ever on the Shenzhen Stock Exchange, surpassing Yihai Kerry Arawana's 13.9 billion yuan listing in 2020, according to LSEG data.

It would also be China's largest domestic IPO since the 30.7 billion yuan listing of Beijing-Shanghai High-Speed Railway in Shanghai in 2009.

• Bids for 636 billion shares

Individual investors placed valid bids for 636 billion shares, worth about 6.4 trillion yuan at the IPO price, according to the filing.

The IPO initially reserved half of the shares for strategic investors, with 70 percent of the balance allocated to institutional investors and 30 percent to individual buyers.

Strong demand from the retail sector triggered a clawback mechanism of the respective allocation, raising the final retail tranche to 930.7 million shares, or 67.95% of the shares remaining after the strategic placement, assuming the over-allotment option is fully exercised.

After the reallocation, the retail tranche was subscribed 683.4 times, according to the document.

Through the aforementioned transaction, China Resources Power Holdings confirmed progress in the plan to split and list its subsidiary China Resources New Energy Holdings. The spun-off entity will trade under the code 001248.SZ.