logo
Share SHARE
FONT-SIZE Plus   Neg

Sinopec To Raise $3.1 Bln In Share Sale; Stock Plunges

China Petroleum & Chemical Corp. (SNP: Quote), popularly known as Sinopec, plans to raise about HK$24 billion or about $3.1 billion, by offering 2.85 billion Hong Kong-traded shares, the company said in a filing with the Hong Kong Stock Exchange. The stock dropped over 7 percent to close trading on the New York Stock Exchange.

The HK$8.45 per share offers a discount of 9.5 percent to the closing price of HK$9.34 per H share on February 4. The shares to be offered represent 17 percent of the existing number of H shares in issue, the state-owned firm said.

Gross proceeds from the placing are expected to be about HK$24.04 billion and the aggregate net proceeds are estimated to be around HK$23.97 billion.

Sinopec said the net proceeds from the placement are to be used for general corporate purposes.

China's state-owned oil companies are scouting for new oil and gas assets amid rising demand from the world's second-largest economy. Beijing-based Sinopec is the largest producer and supplier of oil products in Asia.

In last November, French oil giant Total SA (TOT, TTFNF.PK, TTA.L) agreed to sell its 20 percent stake in a large Nigerian oil block to Sinopec. In last July, Canadian oil and gas producer Talisman Energy Inc. (TLM, TLM.TO) agreed to sell a 49 percent stake in its UK North Sea business to Sinopec for $1.5 billion.

SNP fell 7.2 percent to close at $112.57 on Monday.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
'Booth babes' will not be seen at the RSA Conference scheduled to be held next month, as the exhibitors have added a new clause to its rules that ban revealing clothes. Although, RSA did not use the term "booth babe," its contract clearly explains that staff deployed at booths should wear business... Election fever has gripped the UK as Prime Minister David Cameron on Monday urged his people to prudently choose either a prosperous future under his Conservative Party or economic ruin under the Labour Party headed by Ed Miliband. Fast food giant McDonald's Corp. (MCD), reportedly plans to serve its breakfast menu for the whole day. According to a CNBC report citing analysts from Janney Capital Markets, McDonald's is planning to test serve breakfast for the whole day at select locations starting in the next few months. "Our...
comments powered by Disqus
RELATED NEWS
Trade SNP now with 
Follow RTT