CIC-backed EIG shuns US to pursue Hong Kong listing
EIG Global Energy Partners, the US-based energy sector specialist, will delist its investment vehicle from Goldman Sachs’ electronic platform and list in Hong Kong.
The decision, which comes days after China Investment Corp. (CIC) purchased a minority stake in the company, is seen as a reflection of America's unattractive regulatory environment.
EIG had originally planned to migrate from Goldman's GSTrUE platform - an exchange for companies that don't want to go fully public, now part of NASDAQ - to the New York Stock Exchange, the Financial Times reported. In doing so, it would follow the path taken by private equity investor Apollo Management in April 2011.
However, regulatory requirements have become so onerous since the onset of reforms spearheaded by the Dodd-Frank Act that an offshore listing is now seen as more attractive. Hong Kong was selected over Australia and Singapore as it fits well with EIG's desire to increase its business in Asia.
The move is part of a broader shift to Asia by global companies seeking to raise their profile in the region.
It applies to the likes of Samsonite, taken public in Hong Kong by CVC Capital Partners, but more pertinently to Sunshine Oilsands, a Canadian oil exploration company. Backed by Hong Kong PE firm Cross-Strait Common Development Fund and several Chinese state-owned enterprises, Sunshine is pursuing a $700 million IPO in Hong Kong.
Like EIG, it has a keen interest in shale-based resources, an area in which Chinese oil and gas companies are eager to boost their expertise.
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