Nuclear firm gets resounding response from investors

Shares of China National Nuclear Power Co, a unit of one of the country's three largest State-owned nuclear operators, rose by the daily limit when they debuted in Shanghai on Wednesday.

CNNP surged 44 percent to 4.88 yuan (79 cents) at the opening, according to the Shanghai Stock Exchange. Transaction volume was about 3.58 million yuan.

CNNP, a subsidiary of China National Nuclear Corp, raised about 13.2 billion yuan after pricing the deal at 3.39 yuan in its initial public offering, according to its statements on the exchange's website.

About 9.2 billion yuan of the proceeds will be used in building and operating 10 coastal nuclear power stations in Jiangsu, Zhejiang, Fujian and Hainan provinces, with the rest going to working capital for business expansion, said officials.

The company had said it would offer up to 3.891 billion shares, with 30 percent of the total being transacted online and the rest traded offline.

The enthusiastic response from investors was to be expected, experts said, as many believe that there is a bright future for the nuclear industry in China, the world's largest energy consumer. The nation aims to change its energy mix by increasing the use of nuclear power, which will in turn reduce carbon emissions.

Zhang Huazhu, chairman of the China Nuclear Energy Association, forecast that eight new nuclear reactors will go online this year and six to eight others will be approved. He said that more investment will be needed to feed the growth of the nuclear industry, and floating on the stock market is a smart way to realize that.

CNNP became the first nuclear asset to be listed on the A-share market.

The company has 12 nuclear units in operation and 11 under construction with a total installed capacity of more than 2,000 megawatts, ranking No 1 in the domestic market, according to the company's website.

In the first quarter, the company's operating revenue reached 6.36 billion yuan, up 45 percent compared with the same period last year.