BIZCHINA / Center
COSL plans to sell A shares
By Fu Chenghao (Shanghai Daily)
Updated: 2007-03-27 14:09
Hong Kong-listed China Oilfield Services Ltd said it plans to issue as
many as 820 million new A shares in Shanghai in a sale that could raise
the equivalent to HK$5 billion (US$641 million).
The new yuan-denominated shares to be offered on the Shanghai Stock
Exchange represent 17 percent of COSL's enlarged share capital. COSL
stock closed 5.5 percent higher at HK$6.11 yesterday.
The Shanghai initial public offering has been approved by the company's
board, which will convene a shareholders meeting in June to approve the
sale before submitting the plan to the China Securities Regulatory
Commission, COSL told the Hong Kong Stock Exchange yesterday.
Most of the proceeds from the stock issue will be used for building
vessels and drilling and exploration equipment, with the balance
earmarked as general working capital, it said.
COSL is the oil service unit of China National Offshore Oil Corp, which
is also the parent of Hong Kong-listed CNOOC Ltd, its key oil exploration
subsidiary, and China BlueChemical Ltd, its chemical arm.
If the Shanghai sale proceeds as planned, COSL would become the first
China National unit to conduct a mainland listing, though CNOOC and China
BlueChemical have also signaled their intention to issue A shares.
COSL will increase capital expenditures 18 percent this year to 3.2
billion yuan (US$415 million), it said last Friday while reporting 2006
earnings.
(For more biz stories, please visit Industry Updates)
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