Chinese oil major CNOOC planning to secure USD 4.4 Bn in Shanghai IPO

Author : Saipriya Iyer | Published Date : 2022-04-12 

CNOOC Ltd., China’s major offshore oil producer, is reportedly planning to raise around USD 4.4 billion (28.08 billion yuan) during its stock market debut in Shanghai, marking it as one of the largest public offerings in mainland China.

In a sales prospectus, the company stated that the fundraising will then be expanded to USD 5.71 billion (32.29 billion yuan) although subject to exercising an option of buying and selling more shares.

Sources confirmed that CNOOC has priced the Shanghai offering at USD 1.69 per share, which is a 13% premium to its share price in Hong Kong on Friday. The company claimed that it would leverage the proceeds of the share sale to fund seven oilfield projects and one gas field facility in China and overseas.

The Shanghai IPO comes after CNOOC was delisted from the New York Stock Exchange last October when the U.S. blacklisted the company citing suspected links to the Chinese military. State-supported competitors such as Sinopec and PetroChina are already listed in Shanghai.

Interestingly, CNOOC’s move also comes as several Chinese firms have ceased plans to list in Shanghai citing business activity disruption given the strict city-wide lockdown to tackle the biggest Coronavirus outbreak in two years.

Apart from this, CNOOC is also looking to capitalize on surging global oil prices amidst the Russia-Ukraine conflict. The company anticipates Q1 profits to rise around 62%-89% from the previous year.

The oil giant priced its Shanghai offering at 1.05 times net assets or 23.88 times earnings, again subject to exercising the greenshoe option.

For the unversed, CNOOC’s international division has a portfolio that comprises assets in some of the most substantial basins in Africa, Asia, Europe, the Middle East, and the Americas.

Source credits:


About Author

Saipriya Iyer

Saipriya Iyer

Saipriya Iyer presently works as a content developer for fractovia.org. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- [email protected] | https://twitter.com/saipriya_i

Related News

Audio content platform NOICE raises USD 22 million in Series A funding

Published Date: 2022-04-22         Author: Saipriya Iyer

NOICE, an Indonesian audio content startup, has reportedly raised USD 22 million in Series A funding from Northstar, as well as existing investors Kinesys and Alpha JWC Go-Ventures. The funds will be used to advance technology that aids in the adaptation of stories from local writers into audio f... Read More

U.S. to expand COVID-19 data collection system built under Trump era

Published Date: 2022-03-16         Author: Saipriya Iyer

The Biden administration is reportedly seeking to strengthen the federal COVID-10 tracking system established during the peak of the pandemic to obtain an in-depth record of the impact of respiratory and other diseases on patients and hospital resources. Sources claim that the plan will build on ... Read More

Russia-Ukraine conflict escalation signals heavy dips in stock markets

Published Date: 2022-02-23         Author: Saipriya Iyer

Rising tension between Russia and Ukraine in what the West fears could lead to a big war is signaling investors across Russian, Ukrainian, and broader global markets to brace for impact. The looming threat of war has already led to the depreciation of the countries’ assets by billions, but the... Read More

© 2022 Fractovia. All Rights Reserved