China Offshore Oil Engineering - a subsidiary of China National Offshore Oil - is to raise up to 768 million yuan (about HK$719 million) through an A-share listing in Shanghai.
Up to 627.38 million yuan is expected to fund the construction of a natural-gas pipeline barge.
China Offshore plans to issue 80 million new shares - equal to 32 per cent of the enlarged share capital - at between 8.62 yuan and 9.6 yuan to raise between 689 million yuan and 768 million yuan.
The price range represents 17.6 to 19.6 times the company's per-share net profit in 2000, on a fully diluted basis.
China Offshore, which is engaged in oil platform manufacturing, pipeline engineering and marine oil and gas engineering, is a key supplier to CNOOC.
China Offshore is a sister company of Hong Kong and New York-listed CNOOC, which owns most of China National Offshore Oil's offshore oil and gas exploration assets.