Cnooc plans to issue shares in Shanghai to finance projects worth more than $ 5 billion

Cnooc has not disclosed the price at which it intends to sell each share, but based on the closing price of HK $ 8.07 per share (US $ 1.04) traded on the Hong Stock Exchange. Kong, the value of the transaction is said to be around HK $ 21. billion.

The planned stock offering in Shanghai is similar to that of China Telecom in August, when it raised about $ 7.3 billion, months after its delisting from the US markets.

Cnooc was also delisted from the New York Stock Exchange six months ago to comply with an investment blacklist introduced under former President Donald Trump.

More and more Chinese companies are raising funds in their home market or in Hong Kong, hoping to attract investors who know their business better and are willing to pay a premium for their shares.

Among the projects that would be financed by Cnooc using the proceeds of A shares are its oilfield development projects in Guyana in South America. The proceeds will also be used to fund working capital needs, the company said.

Cnooc stated that if the net proceeds from the issue were less than the required capital of the projects concerned, the deficit would be covered by its self-raised funds.

Citic Securities Co. Ltd. acts as sponsor and main underwriter for the planned issue of Cnooc.

Write to PR Venkat at [email protected]