Penyao raises over $200m through IPO and IFC deal

Published January 11th, 2018

Chinese water project developer Penyao Environmental Protection’s share price has more than doubled since it secured RMB710.4 million ($109 million) in fresh equity at its Shenzhen IPO last Friday. The IPO came just weeks after the International Finance Corporation (IFC) disbursed a $102 million loan to the company to finance five new water and wastewater treatment plants.

The deals mark a dramatic return to the limelight for Penyao, which traded as Asia Environment Holdings on the Singapore stock exchange until it was taken private in 2011. After floating 16.67% of its enlarged equity at RMB8.88 per share, 30.1% of the equity is now owned by brothers Wang Hongchun and Wang Chunlin.

Proceeds from the IPO will fund two water treatment projects in Changchun City, whilst providing working capital. Penyao has historically focused on municipal BOT/TOT projects, but now has research and development partnerships with several universities on sludge management technologies.