CNOOC Launches IPO in HKChina's third largest oil producer,China National Offshore Oil Company Ltd (CNOOC), kicks off its US$1.1-US$1.4 billion overseas listing campaign by opening 5 per cent of its initial public offering (IPO) to retail investors in Hong Kong Friday.According to Fu Chengyu, president of the company, who gave a video press conference Thursday, the remaining 95 per cent of the a total 1.64 billion shares will be offered to international institutional investors. The oil dinosaur plans to sell the stake at a price range of HK$5.14-HK$6.41 (US$0.66-US$0.82) each or US$13.30-US$16.60 per American Depositary Share (ADS). Each ADS represents 20 Hong Kong shares. The Royal/Deutch Shell Corp has promised to purchase some 20 per cent of the IPO, worth a maximum of US$300 million. CNOOC said it intends to use more than 80 per cent of the proceeds on capital expenditure with US$4.7 billion earmarked for use in oil and gas exploration and operation. The remaining 20 per cent will be used in retirement benefits for employees. CNOOC, the only offshore oil producer in China authorized to conduct oil and natural gas exploration and operation with foreign companies in Chinese waters, controls 45 oil and gas reserves in the Bohai Bay, eastern and western South China Sea and East China Sea. It is one of the largest independent oil explorers and operators in the world. As scheduled, the pricing of the issue is expected to be settled on February 21, trading to debut on the stock market in New York on February 27 and in Hong Kong one day after. |
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