Shanghai Electric Group Co., which produces turbine generators in China with Siemens AG, would sell 5 percent of its HK$5.2 billion (US$670 million) initial public offering to the German electronics company, bankers said.

Shanghai Electric, China's largest manufacturer of coal-fired power equipment last year, would sell 2.97 billion shares at between HK$1.50 and HK$1.76, the bankers said, asking not to be identified. Siemens would pay as much as US$33.5 million to buy the shares, they said.

State-controlled Shanghai Electric needs funds to expand its plants to help China, which this year plans to add 65,000 megawatts of generating capacity, the equivalent of about 70 nuclear reactors. China last year told banks to restrict lending to some industries, including autos and steel, to cool inflation and ease power shortages in the world��s seventh-biggest economy that expanded 9.5 percent.

Shanghai Electric's trading debut is planned for April 28.The price range was about 12 to 14.5 times the company's 2005 earnings forecasts by analysts at investment banks hired to arrange the sale, the bankers said. That's higher than the 9.1 times at Hong Kong-listed Harbin Power Equipment Co.

Source: Shenzhen Daily/Agencies