China National Nuclear Corporation, or CNNC, started to trade on the Shanghai Stock Exchange. As a giant state-owned nuclear power producer, its listing received a lot of attention from the public.
More than 13 billion yuan, or two billion U.S. dollars, that is the China National Nuclear Corporation raised through IPO, which made it the biggest IPO in China's A share market in five years.
"On the one hand, we could use the public capital to speed up our development. On the other hand, we will be a public company after the listing. It will get us more supervision from the public, and push us to create more value for society," said Chen Ye, general manager, China National Nuclear Corporation.
According to CNNC's announcement, the raised capital will mainly be used in on-going nuclear projects, as well as in upgrading nuclear equipments and technologies.
"Before CNNC's listing, the government was the sole investor in Chinese nuclear companies. As CNNC turns into a public company, the industrial chain can obtain strong capital support, and the value chain will be improved as well," said Zhang Chunxiao, researcher of Chinese Academy if Governance.
Zhang also said that the development of nuclear power will pave ways for other industries in China.
"Electricity is the basis for other industries. CNNC's listing could improve the whole power system's efficiency, and lower the costs. As a result, it will lower the operating costs in other industries, and increase the national economy's quality and profits," Zhang said.
After the market bell rang, CNNC's share value jumped more than 40 percent. Analysts projected that the first pressure point will be around 10 to 12 yuan per share, or 2.5 or 3 times of its offering price.
