Stocks News
- PetroChina Co. plans Shanghai share sale
Date: 21-Jun-2007 Sources: (Shenzhen Daily)
PETROCHINA Co. plans to tap a red-hot market to raise up to US$5.7 billion in a Shanghai listing, sending its Hong Kong shares up 8 percent to a record and valuing it higher than Royal Dutch/Shell
The planned share sale, intended to bankroll overseas acquisitions, heralds a potential flood of similar listings this year that could restrain a mainland market that has quadrupled in the past year.
PetroChina shares surged more than 8 percent to a record high yesterday, boosting its market value by US$21.1 billion to US$273 billion and ranking it as the world's second oil major behind ExxonMobil
'Theoretically, the huge number of new shares will be negative for the market. But the listing of large, quality firms will itself be a stabilizer,'said Zheng Weigang, senior stock analyst with Shanghai Securities.
'So the listings are actually positive news. They will help slow the market's rise, but will not stop a long-term bull run supported by China's strong economy.'
Chinese oil titans, including top Asian oil refiner Sinopec Corp. and CNOOC Ltd., are scouring the globe for resources to feed an economy that has grown at double digits for the past four years.
PetroChina said it will use the money raised to buy petroleum and gas resources abroad, fund exploration and development, and build refineries and pipelines.
Sponsor Results:
