CIC, Sinopec commit $300m to Sunshine Oilsands IPO
China Investment Corp (CIC) and China Petrochemical Corp. (Sinopec) are among three cornerstone investors to pledge $350 million to Sunshine Oilsands' Hong Kong listing. The news comes a few days after the company said it would postpone its IPO to allow more time to target Canadian investors.
CIC and Sinopec have each agreed to purchase $150 million worth of shares in the Canadian oil explorer, alongside US asset manager EIG Global Energy Partners' $50 million, a source with direct knowledge of the IPO plan told Reuters. CIC recently purchased a minority stake in EIG
The three investors have taken up half of Sunshine's $700 million fundraising target, which would be the biggest IPO in the world so far this year.
Hong Kong's IPO market has been quiet after Chow Tai Fook Jewellery raised $2 billion in December 2011. Total funds raised since the beginning of the year total HK$1.4 billion ($181 million), predominantly from listings by small-sized companies.
Calgary-based Sunshine reportedly raised about $230 million in March last year from Hong Kong private equity firm Cross-Strait Common Development Fund as well as several Chinese state-owned enterprises (SOEs). China Life Insurance and Bank of China are among its SOE backers. The company owns 4,600 square kilometers of oil sands leases in the Athabasca oil sands in Canada's Alberta province.
Prior to the postponment, Sunshine planned to begin order-taking from institutional investors on February 6 with a view to opening to retail investors on February 9. The IPO will represent 25% of the company's expanded capital, one source with direct knowledge of the plans previously told Reuters.
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