HONG KONG China's biggest petrochemical company China Petroleum and Chemical Corp. (SINOPEC) is reportedly expected to raise between $3-4 billion in its initial public offering (IPO) next month.
Shares of or SINOPEC, are scheduled to be listed in New York on October 18 and in Hong Kong the following day, AFP quoted the Asian Wall Street journal on Friday as saying.
Although SINOPEC filed an application to list shares worth up to one billion U.S. dollars in the United States on Tuesday, final details including the price range and offer size have yet to be finalized, the newspaper said.
SINOPEC will begin its Asian share offer roadshow on September 25, with the share offer running from October 9 to October 12, after which pricing will be finalized.
The South China Morning Post reported Friday that China Development Bank together with affiliates of three other state-owned banks would take a 31 percent stake in SINOPEC in exchange for a debt write off totaling $3.6 billion.
The cancelation of the debt would make SINOPEC a more attractive proposition to foreign investors.
The share offering is expected to attract a multitude of buyers including the world's three largest oil companies.
Exxon Mobil will buy up to one billion dollars of shares in the IPO which is estimated to raise at least three billion dollars.
Shell will buy up to $435 million worth of shares, followed by BP Amoco with $400 million, and ABB ASEAN Brown Boveri with $100 million.