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Sinochem plans to raise up to $35 bln yuan from share sale

Energy company Sinochem to use the money to fund oil-refining project in Quanzhou
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Sinochem aims to raise up to 35 billion yuan ($5.5 billon, £3.5 billion) from a share sale in Shanghai, which would make it the biggest in China this year, BBC News reported.

China-based company will utilize the money to fund an oil-refining Project in Quanzhou, it said in a statement to China’s environment ministry.

In October, China’s largest hydroelectric dam builder, Sinohydro has raised 13.5 billion yuan in a share sale, the media reports said. According to analysts, the fourth largest Energy company of China Sincohem’s sale may struggle to wet investor’s appetities.

“The market may not get very excited about a listing,” said Ao Chao Wang at UOB Kay Hian in Shanghai. “Additionally the market demand is not that strong at the moment, he added.

Sinochem  plans to sell upto 26.5 billion new shares or 40% of its enlarged capital, to raise 20-35 billion yuan through the initial public offer or IPO.

Sinochem was set up in 2009 as a result of a group restructuring of Sinochem Group, which owns four listed units including Sinochem International Corp, Sinofert Holdings, Fashion Properties  (China) Ltd and Far East Horizon.  Sinochem deals in petrochemicals distribution, rubber, plastics, and agrochemicals.

It also operates more than 100 subsidiaries in China and abroad. Sinochem Group currently has a 98% stake in Sinochem Corp.

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