(For an expanded IPO diary, please click CN/IPOMENU)
SHANGHAI, Oct 21 (Reuters) - PetroChina (0857.HK), the country’s largest oil and gas producer, said on Sunday it was launching an initial public offer of shares in Shanghai that may be China’s largest, raising more than US$9 billion.
Consultations with investors on pricing will start on Monday and subscriptions will be taken on Thursday and Friday. Funds will be returned to unsuccessful applicants on Oct. 30 and 31, the company said.
The company plans to issue up to 4 billion new local currency A shares, or 2.2 percent of its expanded share capital. It will offer 70 percent of the shares to retail investors and 30 percent to institutions, though the ratio may be adjusted in favour of the retail tranche if demand is strong.
The offer could raise as much as 73.3 billion yuan (US$9.8 billion) based on Friday’s HK$18.92 close of PetroChina’s Hong Kong-listed H shares, although A-share IPOs are usually priced at a discount to the H-share market price.
The current record for an IPO in China’s domestic stock market is held by its biggest coal producer, Shenhua Energy Corp (601088.SS)(1088.HK), which raised 66.58 billion yuan in its Shanghai offer last month.
PetroChina has said it needs a total of 37.8 billion yuan for five projects to construct oil fields, upgrade technology and expand ethylene capacity. Surplus proceeds from its offer will be used to supplement the company’s working capital, it has said. ($1 = 7.50 yuan)