(Yicai) July 12 -- Shares of China National Nuclear Power fell after the atomic power company said it will raise CNY14 billion (USD1.9 billion) through a private placement of shares at a discount of nearly 26 percent.

CNNP [SHA: 601985] slid 2.1 percent to close at CNY11.22 (USD1.55) a share in Shanghai today. The stock has gained 50 percent since the end of last year.

CNNP will place CNY12 billion of the new shares, priced at CNY8.52 (USD1.17) each, with the National Council for Social Security Fund, which manages the country’s social security fund, and CNY2 billion worth with its parent company China National Nuclear Corporation, the Beijing-based firm said late yesterday.

The new share pricing is 80 percent of the stock’s average over the past 20 trading days, CNNP said. It is 25.7 percent below the closing price of CNY11.46 yesterday.

A private placement, in which additional stock is issued to specific investors to raise funds, dilutes the number of a listed company's outstanding shares, often leading to a short-term decline in the stock price.

Following the transaction, the NSSF will become the second-largest investor in CNNP with a 6.9 percent stake, and the combined stake of CNNC and entities acting in concert will fall to 56.1 percent from the 59.8 percent.

The proceeds will be used to build the No. 1 to No. 4 nuclear power units at the Xudapu Nuclear Power Plant, the No. 3 and No. 4 nuclear power units in Zhangzhou Nuclear Power Plant, and the No. 7 and No. 8 power units at the Tianwan Nuclear Power Plant.

With more nuclear power projects being approved for building in China, there will be a funding gap for CNNC’s new projects over the next six years, it noted, adding that the funds raised from the latest deal will provide financial support for new projects.

The CNNP's commercial power output reached about 105.3 billion kilowatt hours in the first six months of this year, a 4.4 percent increase from a year earlier, according to operating data released yesterday. Electricity generated by nuclear power units fell 1.2 percent to around 89.2 billion kWh. 

Solar power output rose 55 percent to 8.5 billion kWh, while wind power jumped 51 percent to about 7.63 billion kWh.

CNNP has a controlling stake in 25 operating nuclear power units as of last month, with their installed capacity topping about 23.75 million kilowatts. The firm's wind and solar power capacities were 7.56 million kW and 14.81 million kW, respectively, with the capacity of energy storage power stations it controls reaching about 1.13 million kW.

CNNP also has 15 atomic power units under construction or approved to be built, with a planned installed capacity of 17.57 million kW, it said. Wind turbine capacity of about 3.25 million kW and solar power capacity of 11.47 million kW are under construction too.

Editor: Martin Kadiev