China General Nuclear Power Group is raising up to $3.16 billion in an initial public offering (IPO) in Hong Kong.

GIC Pte Ltd., Singapore’s sovereign-wealth fund, hedge fund Och-Ziff Capital Management Group LLC., and Hong Kong electricity firm CLP Holdings Ltd are among the cornerstone investors, according to insiders.

The IPO by China’s largest nuclear plant owner is being seen as a strategic move aimed at capitalising on Beijing’s decision to encourage building more nuclear plants, in a bid to counter the country’s pollution problems.
China nuclear power
Coal power makes up around 70 per cent of its total power capacity and the government wishes to reduce that dependency.

The company currently operates 11 nuclear power generating units mainly in China’s southern Guangdong province, where the power grid is the company’s top customer. It plans to use proceeds from the IPO to build more power plants and to buy a stake in a nuclear power station owned by its parent, CGNPC.