China's Huadian Power, which builds and operates power plants, said on Wednesday it would raise up to 3.5 billion yuan ($512 million) by issuing a maximum 750 million new A shares.
Subscription to the issue will be limited to 10 investors, including its controlling shareholder China Huadian, one of the country's five major power generation groups.
Huadian Power set a minimum subscription price of 4.50 yuan, compared with Wednesday's closing price at 4.81 yuan. Apart from China Huadian there are no agreements with any other investors.
Huadian, which earlier announced a 2.56 billion yuan loss for the year ended December 2008 and no dividend, said it would use the proceeds from the share issue for coal-power generation, hydropower and other projects.