China Nuclear Power Co.Lltd.goes To H Share Listing Plan

In the process of company development,there will be a need for financing.However,financing through bank loans,bond issuance and other means can not always meet the company's demand for funds.Companies obtaining financing through IPO have many advantages,such as large scale of financing and low cost of financing.In the process of IPO,the pricing of IPO is a key factor to determine if a IPO is successfully launched and issuance is successful.In the Hong Kong and Mainland China capital markets,,most of the companies chose to launch IPO on H-shares market followed by A-shares market in the large majority of cases,primarily due to the fact that A-share IPO will obtain more proceeds as A-shares has a relatively higher valuation.However,launch of A-shares offering followed by H-shares is rarely seen.There are three main purposes for China Nuclear Power Co.,Ltd.to go public on H-share market: firstly,to broaden financing channels;secondly,to enhance the company's reputation;and thirdly,to promote equity diversification.In respect of H-shares IPO,if a Mainland China-registered company plans to be listed on Hong Kong market,it should satisfy the corresponding conditions in terms of company capitalization and company profitability stipulated by Hong Kong Exchanges and Clearing Limited.Through comparative analysis,China Nuclear Power Co.,Ltd.meets the relevant requirements in H-share listing,with no rules-related obstacles.This paper calculates the H-share IPO pricing of China Nuclear Power Co.,Ltd.by using absolute valuation method and relative valuation method respectively.For the absolute valuation method,DCF(discounted cash flow)method is used to calculate the valuation;for the relative valuation method,P/E ratio and P/N ratio are used to calculate the valuation.Through analysis and comparison of the two valuation methods,a pricing proposal for H-share IPO of China Nuclear Power Co.,Ltd.is given.In conclusion,this paper analyses the background and significance of China Nuclear Power Co.,Ltd.going public on H-share market,and concludes the feasibility of going public on H-share market.Through analysis and comparison of the commonly used valuation methods in capital market,this paper finds out the valuation methods applicable to China Nuclear Power Co.,Ltd.,carries out valuation analysis based on the valuation model established,and obtains the pricing proposal for its H-Share IPO based on the comparative analysis of different valuation methods.