* Sinopec shares sold at 9.5 pct discount to Monday's close
* Asia's largest refiner raises funds for business
* Stock falls around 7 percent in early Tuesday trade
By Elzio Barreto
HONG KONG, Feb 5 China Petroleum & Chemical Corp
(Sinopec), Asia's largest refiner, said it plans to raise about
$3.1 billion in a share offering to fund its business
development, sending its shares sharply lower as investors
fretted about the volume of new stock in the market.
Sinopec agreed to sell 2.85 billion new Hong Kong-traded
shares at HK$8.45 each, a 9.5 percent discount to
Monday's close and 7.4 percent below the average closing price
over the past 30 days, the company said in a filing to the Hong
Kong stock exchange late on Monday.
The stock fell as much as 7.1 percent in early trade on
Tuesday to HK$8.68, but held above the placement price.
Sinopec's Shanghai-traded shares were down 3.1
The shares were sold to a group of about 10 investors that
included some of the world's largest institutional investors and
global fund managers, a source familiar with the transaction
Sinopec said in its filing that the deal would help the
company "enrich its shareholder base by attracting a number of
high caliber investors to participate in the placing." It gave
no further description of the buyers.
Proceeds from the offering would be used "as general working
capital to fund the business development of the company,"
The refiner has been looking to buy overseas assets from its
parent Sinopec Group to boost oil and gas production. Fu
Chengyu, chairman of Sinopec Group, said last year Sinopec Corp.
could raise funds from the market to help fund those
Goldman Sachs acted as sole global coordinator and
bookrunner for the deal.