Goldwind Science and Technology Co, the country's largest maker of wind-powered generators, plans to issue 50 million shares in a Shenzhen initial public offering (IPO).

The company is expected to raise 1.88 billion yuan from the IPO. It had 2.8 percent of the world's wind-power generator market in 2006 and the IPO would account for 10 percent of the company's expanded share capital, according to its prospectus released yesterday.

Xinjiang-based Goldwind expects a net profit of 601 million yuan this year, with earnings per share hitting 1.2 yuan, the prospectus said.

Goldwind's turnover has doubled in each of the past few years and tripled to 1.5 billion yuan in 2006 as a result of the government's clean energy push.

The use of wind power, a clean and renewable energy source, has grown quickly in China in recent years. By the end of 2006, the total installed capacity of wind power in the country was about 2,600 MW. In 2006 China added a total of 1,300 MW of installed wind power generation.

"This year, the nation's wind power industry will continue to see quick growth. In 2007, the installed capacity is expected to be increased by another 1,000 MW," said Shi Pengfei, vice-chairman of the Chinese Wind Energy Association.

Shi estimates that China possesses a 1,000-GW potential in wind energy, 250 GW on land - mainly on the northwest and east coasts - and 750 GW offshore.

By 2020, wind power will have a market value of $1.25 billion, making China potentially the world's largest market. However, competition is also heating up at home, with a dozen foreign players vying for a slice of the booming market, including global leader Vestas Wind Systems, Spain's Gamesa and India's Suzlon Energy Ltd.

Goldwind kicks off its IPO roadshow in Beijing today, Shanghai on Monday and Shenzhen on Tuesday. The company plans to use the proceeds to expand capacity, finance research and development and develop wind farms, the prospectus said.

A number of Chinese energy players have sold shares in the United States, including solar cell makers Yingli Green Energy Co Ltd and LDK Solar Hi-Tech Co.

(China Daily December 7, 2007)