PetroChina Company Limited (PetroChina) is waiting for approval of its A-share listing plan from the country's regulatory body, according to China Oil News, which is affiliated to PetroChina's parent firm China National Petroleum Corporation (CNPC).
The US- and Hong Kong-listed company plans to issue five billion shares at a price of 6 yuan (about US$0.75) to raise 30 billion yuan on the mainland A-share market, considerably more than the 10 billion yuan raised by Sinopec, Nanfang Daily reports.
The company has invited China International Capital Corporation (CICC) to be its major underwriter. The funds raised will be used for the company's core business, including potential M&A projects at home and abroad.
“PetroChina is ready for the initial public offering (IPO) of A-shares. We are waiting for approval from the CSRC (China Securities Regulatory Commission),” Zeng Yukang, deputy general manager of CNPC was quoted as saying by China Oil News.
A-share trading is limited to mainland investors and a handful of foreign institutions. Many Chinese companies chose to list overseas when the mainland stock market went through a long bearish period from 2000 to 2005.
The country's regulatory body has been encouraging blue-chip Chinese firms listed overseas to return to the A-share market to build a better-performing and more stable market.
China's largest offshore oil producer CNOOC announced this week its plan to list on the mainland A-share market in 2007.
Most of CNPC's assets and liabilities relating to its exploration and production, refining and marketing, chemicals and natural gas activities appear on PetroChina's balance sheet.
As China's largest producer and supplier of crude oil and natural gas with registered assets of 115 billion yuan, CNPC has invested and provided services in 48 countries and regions.
(Xinhua News Agency March 9, 2007)