Chinese oil giant CNOOC to raise up to US$5.1 billion in Shanghai IPO
- The company will sell 2.6 billion shares at 10.8 yuan starting on Tuesday
- China’s largest offshore driller was delisted from New York Stock Exchange under Trump era executive order
The company will sell 2.6 billion shares representing 5.5 per cent of its total share capital at 10.8 yuan and hopes to raise between 28.1 billion yuan and 32.3 billion, it said in a filing to the Shanghai Stock Exchange on Monday. Its stock will trade under the code 600938.
Both telecoms firms were added to a list of 31 Chinese companies that US regulators accused of being affiliated with China’s military, and barred US investment in them in November 2020. CNOOC was added to another blacklist by Washington in January last year for allegedly intimidating neighbouring countries in the South China Sea.
CNOOC’s IPO is expected to be the largest A-share offering this year and will allow the company to widen its funding channels at home. The proceeds will be used for oilfield development projects in both China and overseas, as well as enriching its liquidity, according to its prospectus.
The oil giant reported a record high net profit of 70.3 billion yuan for 2021 amid a surge in oil prices due to rising geopolitical tensions. Its gas sales revenue reached 222.1 billion yuan.
On Monday, its Hong Kong-traded shares fell 4.3 per cent to HK$11.16. The city’s benchmark Hang Seng Index dropped 3 per cent.