China General Nuclear Said to Pick Sponsors for $2 Billion IPO

China General Nuclear Power Group, the country’s biggest producer of nuclear energy, plans to appoint ABCI Securities Co., Bank of America Corp. and China International Capital Corp. as joint sponsors for an initial public offering in Hong Kong, people with knowledge of the matter said.

The company, based in Shenzhen, plans to file an application to the Hong Kong stock exchange in the next few months, the people said, asking not to be identified because the information is private. It may seek about $2 billion from the offering, they said.
General Nuclear is raising money to expand as the Chinese government curbs coal use in favor of cleaner energy. The country plans to add 8.6 gigawatts of nuclear power capacity this year, the National Energy Administration said in January.

Deutsche Bank AG, which helped General Nuclear prepare for its IPO from last year, is no longer working on the deal, people familiar with the matter said. The Frankfurt-based lender was weighing whether to quit the share sale amid a probe into hiring practices in Asia, people with knowledge of the matter said in March.
General Nuclear has the capacity to generate 11.6 gigawatts of nuclear power, more than half the nation’s total, according to its website. A Hong Kong-based external spokeswoman for the company declined to comment on the IPO plan. Sponsors are the most senior advisers on IPOs in Hong Kong and typically get a greater share of underwriting fees.
China National Nuclear Power Co., the country’s second-largest operator of nuclear plants, plans to raise at least $2.6 billion from an IPO in Shanghai, according to a draft prospectus filed in May.
Amy Chang, a Hong Kong-based spokeswoman for Deutsche Bank, declined to comment.