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Sinochem Energy files for USD2B Hong Kong listing

August 07/2018

MOSCOW (MRC) -- Sinochem Energy, a unit of Chinas state-owned Sinochem Group, has filed for a Hong Kong initial public offering (IPO) of about USD2 billion, as the group seeks to raise capital amid a shift to higher-value businesses, including petrochemicals production, as per Hydrocarbonprocessing.

Sinochem Energy operates the groups oil and petroleum products trading, refining, storage and logistics, as well as distribution and retail businesses, but not its struggling upstream business that includes overseas oil and gas production.

Reuters reported in April that the group had hired seven banks for the listing of its key oil assets that was expected to raise about USD2 billion.

The proposed float comes amid a push by Beijing to inject new life into bloated state-owned enterprises by encouraging private capital investment in such enterprises.

China Tower, the worlds largest telecoms tower operator, for example, is raising up to USD8.7 billion in its Hong Kong listing. The state-owned firm has secured USD1.4 billion from 10 cornerstone investors.

Beijing is also looking to create bigger, stronger state firms, and build globally competitive enterprises.

Sinochem Group is set to merge with state-owned ChemChina, which in 2016 agreed to buy Swiss pesticides and seeds group Syngenta for USD43 billion.

The Sinochem-ChemChina deal will create the worlds biggest industrial chemicals firm worth around USD120 billion, to be led by Sinochem Chairman Frank Ning.

Sinochem Energys IPO plans have been pushed ahead by Ning, who joined its parent group in early 2016 from food group COFCO, where he was well known for aggressive restructuring and M&A.

Under his leadership, several Sinochem units have been given more leeway in their expansion plans and more support for tapping capital markets for fundraising.

Hit by low oil prices over the last few years, Beijing-based Sinochem Group has aimed to shift from exploration and production to value-added refining and retailing businesses.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Crude oil.
Category:General News
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