Hubei Energy Group completes A-share issuance to controlling shareholder

Hubei Energy Group Company Limited has concluded its 2024 non-public issuance of A-shares, with the process and subscriber qualifications confirmed as compliant by Beijing Zhonglun Law Firm and co-sponsors CITIC Securities and China International Capital Corporation. The issuance, approved by the China Securities Regulatory Commission (CSRC), involved 597,938,144 A-shares at a price of CNY 4.85 per share.

The sole subscriber was China Three Gorges Corporation, Hubei Energy Group's controlling shareholder and actual controller, who committed to subscribing with self-owned or legally raised funds. This transaction raised a total of CNY 2,899,999,998.40, with net proceeds of CNY 2,894,700,957.25 after deducting issuance costs. The shares issued to China Three Gorges Corporation are subject to a 36-month lock-up period, while existing shares held by China Three Gorges Corporation and its affiliates are locked up for 18 months.

The funds raised are earmarked for the development and construction of the company's main business pumped-storage power station projects, ensuring a robust capital structure and governance. The issuance did not alter the company's control, with China Three Gorges Corporation retaining its position as the largest shareholder with 22.81% of total shares after the issuance.