One of China’s top oil companies, CNOOC Limited, announced on Monday, April 11 that it plans to raise 28.08 billion yuan (4.41 billion dollars) from a Shanghai listing. According to Reuters, this will make it the 11th-biggest public offering on the mainland.
The largest offshore oil driller in China is selling 2.6 billion shares for 10.80 yuan (1.7 dollars) a share.
The firm’s overall sum collected from the domestic offering will be 5.07 billion dollars if it executes an over-allotment option, which amounts to an extra 390 million shares.
If CNOOC put its Shanghai offering at 23.88 times earnings, or 1.05 times net assets, Reuters reported from Refinitiv data that the greenshoe option could make it the tenth top listing in China.
CNOOC said it would use the proceeds from the share sale to finance one gas and seven oilfield projects in China and abroad and replenish capital.
The Shanghai public offering comes after CNOOC’s delisting from the New York Stock Exchange (NYSE) in February 2021.
CNOOC was ejected from the NYSE as the U.S. moved to bar investment in Chinese enterprises that are linked to China’s military, intelligence, and security agencies.
On March 30, Reuters reported that CNOOC recorded a net profit of 70.32 billion yuan (11.08 billion dollars) in 2021, a near three-fold increase in earnings from the previous year. The growth is boosted by rising oil and gas prices as global demand rallied following the COVID-19 pandemic.
The firm is now anticipating a 62%-89% rise in first-quarter profit from last year. This year, world oil values are climbing following the Ukraine-Russia conflict.