Case Name :      Huaneng Power International, Inc.: Raising Capital in Global Markets

Authors :           Stephen R. Foerster, Andrew Karolyi, Jerry White

Source :             Ivey Publishing

Case ID :            98N001

Discipline :        Finance

Case Length :    26 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

It is early October 1994, and Huaneng Power International (HPI), an independent power producer in the People’s Republic of China (PRC), is in the process of executing a global equity issue to raise funds for the construction of new power plants. The company is planning to list the new shares through an American Depositary Receipt program on the New York Stock Exchange. The company has recently reduced the price of the issue due to poor market conditions and investor resistance to the price range stated in the preliminary prospectus. The student must decide, as HPI management, whether the new offer price and choice of listing exchange is reasonable in light of recent market events and the political, economic, social, and technological environment in the PRC.