• Sun
  • Jul 13, 2014
  • Updated: 7:16am

MIE targets HK$1.4b in IPO

PUBLISHED : Tuesday, 30 November, 2010, 12:00am
UPDATED : Tuesday, 30 November, 2010, 12:00am

MIE Holdings, a Beijing-based oil exploration and production company that failed to list in the United States in May, is braving it out in Hong Kong to launch a HK$1.4 billion offering.

According to a presentation for investors yesterday, the first day of its IPO roadshow, MIE is selling 662 million shares at an indicative range of HK$1.70 to HK$2.16 a share, to raise up to HK$1.43 billion.

The company operates oilfields in Songliao Basin, and all the oil produced is sold to PetroChina, the mainland's largest state-owned oil company.

According to a pre-listing prospectus, last year MIE produced 7,637 barrels of crude oil per day, down from 8,150 barrels in 2008.

Its revenue for last year was 1.17 billion yuan (HK$1.36 billion), down from 2008's 1.97 billion yuan. Net profit was 110.5 million yuan, down from 611.1 million yuan in 2008.

The oilfield operator, which is expected to announce share sale details tomorrow, attempted to list on the New York Stock Exchange in May but called off the plan, citing poor market conditions, according to Reuters.

Alvin Cheung, an associate director at Prudential Brokerage, said market conditions would be tough for listing candidates such as MIE. 'What we have seen in the past week is that some of these offerings have been undersubscribed,' he said. 'Debut performances have also been unimpressive and this will deter investors.'

Last week, Bluestar Adisseo Nutrition Group, an animal nutrition company majority-owned by China National Chemical Corp, said it would not proceed with its US$1.56 billion listing plan. China Datang Corp Renewable Power, the nation's second-largest wind power generator by installed capacity, has postponed its US$1.5 billion listing in Hong Kong.

Separately, Reuters reported that Luxembourg-based luggage maker Samsonite was considering a US$1 billion initial public offering in Hong Kong, citing a Sunday Times report.

Asking price

MIE is selling 662 million shares at an indicative range of HK$1.70 a share to, in HK dollars: $2.16

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