Shengli Oilfield Highland Petroleum Equipment, which makes equipment used in drilling for oil, plans to raise about US$200 million from an initial public offering in New York later this year, market sources said.
The company has not yet decided on whether to sell shares on the Nasdaq or New York Stock Exchange, the sources said.
The company could not be reached for comment.
Shandong-based Shengli Oilfield makes drilling rigs, pipes and pumping units. It also manufactures polyacrylamide, a chemical used in contact lenses and genetic research.
The company sells rigs and other products in North and South America, Russia, Central Asia and Indonesia, as well as in the domestic market.
Shares of China Oilfield Services, the largest provider of equipment and services to Chinese oil companies, are up 18.5 per cent this year and trade at 22 times expected earnings.