SHENZHEN'S Chiwan Petroleum Supply Base may become the first mainland stock to try Singapore's Central Limited Order Book (CLOB) International system for direct share trading. Chiwan Petroleum, an oil drilling equipment supplier, is undertaking a roadshow for its planned issue of 60 million B shares in a private placement to raise US$25.2 million. It is understood that Chiwan Petroleum is seeking two alternatives to boost shares liquidity after listing on the Shenzhen stock exchange. One is the submission of an application to the Shenzhen Securities and Exchange Commission to use the CLOB system for shares trading in Singapore. The second is to seek a direct secondary listing on the main board of the Singapore Stock Exchange. 'Whether there will be a secondary listing or CLOB will be subject to Chinese authorities' arrangements,' a source said. The CLOB system, in use in Singapore since 1990, will provide Singaporean investors and brokers a direct channel of trading Chiwan Petroleum shares, without placing orders with brokers in Shenzhen. 'The shares can be traded in Singapore,' the source said. 'There will be one more market in addition to Shenzhen.' China's B share companies have pinned high hopes on exploring the Singapore market, as they believe the move will stimulate the already-sluggish trading of their shares. According to a research report by DBS Securities Hong Kong, Chiwan Petroleum's underwriter, the Shenzhen company has priced the shares between 31 and 42 US cents at 8.85 to 12 times 1995 prospective earnings. After the listing, its major shareholder China Nanshan Development Co will hold a 51.8 per cent stake and offshore Joint Services Co of Singapore will control 22.2 per cent. The B shareholding accounts for the remaining 26 per cent. The company owns and operates the Chiwan Base, a logistics and supply base in Chiwan, and is engaged in providing comprehensive services to oil companies and those involved in offshore oil and gas exploration, development and production in the South China Sea. DBS Securities analyst Sean He said Chiwan Petroleum held a monopolised position in the South China Sea, as it was the only company there to provide such logistical service. 'As the oil drilling and oil exploration activities will grow, the company's performance will directly link to their activities,' he said. The company posted accounts receivables of $1.59 million at the end of last year, a hefty rise of 63 per cent from the year earlier's $980,000. 'The company has no bad debts problems because its clients are well-known international oil companies,' Mr He said.