A Chinese government-owned nuclear power corporation plans to launch an initial public offering (IPO) of around ¥13.4 billion (about $2.16 billion). The China National Nuclear Power Corporation announced that the IPO will be offered at the Shanghai Stock Exchange on June 2 this year.

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The IPO offering will represent a quarter of the total ownership of the state-owned nuclear corporation. Based on the corporate IPO prospectus, the company plans to sell around 3.89 billion shares to the public, CNBC reported.

This will be the second largest IPO offering in the local stock market. Around five years ago, the China Everbright Bank Co. successfully made an IPO of ¥21.7 billion ($2.6 billion), according to Jiangsu China.

Experts say the sale of its shares may significantly reduce the government's 97 percent ownership of the China National Nuclear Group. The company reportedly contributes around 40 percent of the nuclear energy that China uses.

The IPO prospectus mentioned that ¥4.18 billion from the IPO sale will be held as cash, while the remaining amount will be used to construct additional power plants in the provinces of Hainan, Fujian, Jiangsu and Zhejiang.

The underwriters for the IPO will be national banks China Securities and CITIC Securities, as well as UBS AG, a Swiss global financial service company. The IPO offering is good news for the Shanghai Stock Exchange, which is experiencing its highest growth in seven years.

Chinese authorities are reportedly actively soliciting private funds that will finance over 1,000 investment projects which will help stimulate economic growth, according to Reuters.

The 2011 nuclear accident that occurred in Japan has forced Chinese authorities to delay the building of new nuclear power plants in the country. However, China's goal to cut down on its coal consumption has revived interest in nuclear power to satisfy the country's growing energy consumption.

TagsIPO, Nuclear Power, China IPO, New Initial Public Offering in China, New IPO in China, New public company in China, New publicly-listed company in China, China National Nuclear Power Corporation, China National Nuclear Power Corporation IPO