It is reported that Hubei Energy Group obtained the Hubei SASAC approval for its revised private placement plan and will issue a maximum of 662 million share at not less than CNY 4.81 per share in order to raise up to CNY 3.11 billion for the construction of four natural gas pipelines and a wind farm at Qiyue Mountain in Hubei province.

The company had initially planned to issue up to 444 million shares at not less than CNY 7.33 per share in order to raise a maximum of CNY 3.25 billion.

Hubei Energy Group, which is mainly engaged in the production of hydropower, wind power and thermal power had installed capacity of 5.45 million kilowatts at end 2010 of which hydropower accounted for 3.62 million kilowatts.

The company generated 15.57 billion kilowatts of power in 2010 and sold 1.35 million cubic meters of natural gas. According to the filing, there is great market potential as the four pipelines are located in towns in Hubei province which currently have no pipelines.

According to the report most of the power generated by the company was sold in Hubei province and Zhejiang, Hubei and Hunan provinces faced power supply shortages in early 2012.

(Sourced from yicai.com)