China Oilfield Services Ltd. (COSL), in which the China National Offshore Oil Corporation (CNOOC) is a majority stockholder, made an initial public offering (IPO) Wednesday on the Stock Exchange of Hong Kong.
The listing of COSL peaked at 1.92 HK dollars and closed at 1.89 HK dollars, a 12.5 percent growth over its issuance price of 1.68 HK dollars. The IPO brought in a total of over 1.04 billion HK dollars, with 561 million of its shares traded on the market.
At present, COSL is China's largest provider of offshore oilfield services. It originated from a restructuring of its parent company CNOOC last year to integrate the offshore oilfield services.
With over 50 percent of its orders coming from CNOOC, COSL hopes to strengthen its competitiveness by drawing on the benefits of the IPO to seek more clients both home and abroad in the future.
COSL hopes to become the bellwether, or leader, of offshore oilfield service in Asia and Oceania within five years.
China Oilfield Services Ltd Wednesday closed sharply higher against its IPO price in heavy trade on its debut on the Stock Exchange of Hong Kong.
The stock closed at 1.89 HK dollars against its IPO price of 1.68 HK dollars on volume of 561 million shares and a turnover of 1.04 billion HK dollars (133 million US dollars).
China Oilfield raised around 2.23 billion HK dollars by selling1.33 billion H-shares at 1.68 HK dollars. The company said its public offer of H-shares was 18.7 times subscribed and its institutional tranche "significantly" oversubscribed.
(china.org.cn November 21, 2002)