What’s new: China’s state oil giant CNOOC Ltd. kicked off subscription Tuesday for its initial public offering in Shanghai, aiming to raise as much as 32.3 billion yuan ($5.1 billion).
The company will sell 2.6 billion shares, representing 5.5% of its equity, at 10.8 yuan ($1.70) apiece to raise 28.1 billion yuan. Underwriters will also be able to allocate an additional 15% of shares at the same offering price for 30 days after the date of listing if the green-shoe option is exercised, pushing total fundraising to 32.3 billion yuan.
Proceeds will be used for global project development including oil and gas fields in Guangdong and Guyana, CNOOC said.
The background: China’s biggest offshore driller won approval for its Shanghai share sale late last month. The company has prepared for the offering since 2021 after it was delisted from stock exchanges in New York and Toronto amid U.S. sanctions over the company’s alleged ties to the Chinese military.
By the end of 2020, CNOOC held proven reserves of about 5.37 billion barrels of oil equivalent in more than 20 countries and regions around the world. About half of its gas and oil assets are abroad.
CNOOC posted record 2021 net profit of 70.3 billion yuan, up 182% year-on-year, reflecting soaring oil prices and rising production. The company’s oil and gas sales rose 59% to 222.1 billion yuan.
CNOOC’S Hong Kong traded stock closed Tuesday at HK$11.06 ($1.40).
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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