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Last updated at: (Beijing Time) Wednesday, November 28, 2001

China Aviation Oil (Singapore) Corporation Launches IPO

China Aviation Oil ( Singapore) Corporation Ltd (CAO), the sole importer of jet fuel for China's civil aviation industry, launched its initial public offer (IPO) of 144 million new shares Monday and will be listed on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) on December 6, 2001.


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Initial public offer launched
China Aviation Oil ( Singapore) Corporation Ltd (CAO), the sole importer of jet fuel for China's civil aviation industry, launched its initial public offer (IPO) of 144 million new shares Monday and will be listed on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST )on December 6, 2001.

At a press conference held to launch the IPO, CAO managing director Chen Jiulin announced that at a price of 0.56 Singapore dollars (about 0.31 U.S. dollars) per share, 10 million shares will be offered to the public with 134 million shares by way of placement.

Chen also said the CAO plans to use the estimated 76.6 million Singapore dollars (about 42.8 million dollars) of net proceeds raised from its IPO for future expansion in China's interior and Hong Kong, for acquisition in the U.S. and Europe and for company' s working capital.

CAO and its parent company
The CAO, established in 1993, serves as the jet fuel procuement arm for its parent company, China Aviation Oil Supply Corporation (CAOSC), a state-owned enterprise that is the sole entity authorized by the Chinese government to allocate the import quota for the import of jet fuel into China.

Its main business include the ownership and construction of jet fuel infrastructure as well as procurement, transportation, storage and refueling of jet fuel to airports in China.

CAOSC President Hai Liancheng told the same press conference that following its listing, the CAO will become the first Chinese aviation oil enterprise to be listed and the first Chinese enterprise operating overseas go listed on its own asset at foreign stock exchange.

Estimating that China's jet fuel import will grow by at least 16 percent per year to reach an estimated annual import volume of 16 million metric tons by 2016, Chen said his company has a well- mapped strategy to ride on the growth of jet fuel industry and to leverage on the increasing purchase volume of jet fuel into China to lower its unit cost and thereby improve its margins.

The Development Bank of Singapore Ltd is the manager, underwriter and placement agent for the CAO's IPO.



China Aviation Oil (Singapore)

China Aviation Oil (Singapore) Pte Ltd (CAO in brief) is an Approved Oil Trader in Singapore and the first wholly-owned subsidiary of China Aviation Oil Supply Corporation (CAOSC).

The parent company CAOSC, with its headquarters located in Beijing, is one of the largest stated owned enterprises in China under the control and supervision of the Ministry of Civil Aviation Administration of China (CAAC). CAOSC was ranked 173rd position in China's top 500 state-owned enterprises and secured the 7th position amongst the "Commercial Enterprises" in 1995. Their rankings have since been upgraded although the latest positions have yet to be made public. CAOSC is responsible for the construction of aviation oil supply infrastructure, purchase of aviation oil supply equipment and supply of jet fuel for over 100 foreign and domestic airlines (including the purchase, transportation, storage, and into-plane services of jet fuel) at more than 140 civil airports throughout China.



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