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PetroChina details global offer to raise US$3 bln

HONG KONG: PetroChina, the listing arm of China's largest oil and gas producer, unveiled on Sunday details of a global offer to raise US$3.1 billion, marking a leap in China's efforts to modernise an ageing and troubled industry.

The unit of China National Oil Corp (CNPC) is offering 17.58 billion H shares at between HK$1.24 and HK$1.51 each, including brokerage and transaction levies, to be listed in Hong Kong.

Of that amount, 15.82 billion new shares are being offered by PetroChina and 1.76 billion old shares are offered by CNPC, the company said in a prospectus.

The global offering comprises four tranches.

The Hong Kong public offer will involve 879.12 million shares, or five percent of the global offer.

An Asia offering to institutional investors making up 35 percent of the global offer consists of 61.54 million American Depository Shares (ADS), which could be delivered in the form of 6.15 billion H shares.

The United States offering, or 25 percent of the total offer, comprises 43.96 million ADS, or 4.4 billion H shares.

The European offering, or 35 percent, includes 61.54 million ADS, or 6.15 billion H shares.

The company also said it had secured a number of corporate investors. BP Amoco Plc will take a 20 percent stake in the global offer or up to a maximum of US$1 billion.

Backing it are also Hong Kong heavyweight developers Cheung Kong Holdings Ltd 0001, Hutchison Whampoa Ltd 0013.HK, Sun Hung Kai Properties 0016 and Chow Tai Fook Nominee, the parent of New World Development Co Ltd 0017.

All four have agreed to purchase an aggregate of US$350 million in corporate placing shares, PetroChina said.

The total offer comprises only 10 percent of the company's enlarged capital and CNPC will keep a 90 percent stake in PetroChina.

The public offering in Hong Kong will begin on Monday and end on March 30, when pricing would be determined, it said.

Trading in Hong Kong is expected to begin on April 7, while the ADS, to be listed in New York, are expected to begin trading on April 6, global coordinator of the offer Goldman Sachs said.

China International Capital Corp is the other coordinator.-Reuters