CNPC (Hong Kong), a subsidiary of China's oil and gas exploration and development company China National Petroleum Corp, has raised about $10.31 million through a private placement of 33.11 million shares. The shares were priced at 31.14 cents each and were placed to Integrated Asset Management (Asia), CNPC said yesterday. It said the new shares represented 0.87 per cent of its existing issued share capital and 0.86 per cent of the enlarged share capital. The issue price represented a discount of about 10 per cent to the 10-day average closing price of 34.6 cents quoted on the stock exchange to September 6 and 14.7 per cent to the closing price of 36.5 cents on the latest trading day. Executive director Li Changlin said the net proceeds would be used to settle a disputed debt of about $21.7 million, which has been the subject of consolidated High Court action. He also said Integrated Asset Management was an independent party and an investment company incorporated in the British Virgin Islands. The beneficial owner of the placee is Yam Tak-cheung, a Canadian whose main business comprises securities investment and the ownership of a garment business. CNPC (Hong Kong), formerly Paragon Holdings, was bought by CNPC in 1993 through a backdoor listing.