Under the placing agreement, CNOOC (BVI) Limited, the controlling shareholder of the company, has agreed to place--through the joint bookrunners--2.5 billion shares in the company to independent investors at a price of HK$6.15 (US$0.79) per share. Within 14 days of the placing agreement, CNOOC (BVI) Limited will subscribe for 2,272,727,273 new shares at a price of HK$6.15 per share. The net proceeds from the subscription will be approximately HK$13.78 billion (US$1.8 billion).
Chinese laws and regulations oblige CNOOC to sell 227,272,727 sale shares as part of the placing. This allocation will be directed to the National Social Security Fund (NSSF.
CNOOC will use the net proceeds from the subscription to finance continuing capital expenditure requirements in relation to the OML 130 in offshore Nigeria, along with general working capital for the group's operating activities.
This placing of existing shares and subscription of new shares of the company is a notable transaction in CNOOC's history because it is the largest accelerated bookbuilt offering in Asia (outside of Japan) this year.
"This is the largest capital markets transaction since the company's IPO," said Fu Chengyu, CNOOC's CEO. "It is also one of the largest accelerated bookbuilt offerings by a Chinese issuer ever. Strong demand generated by the placement is a testament to the great achievement that the company has made since its IPO in February 2001."
"We're pleased to see that the company continues to enjoy a strong position in the international capital markets," commented Yang Hua, CNOOC's chief financial officer and executive vice president. "We will continue to pursue our growth strategy while maintaining prudent financial discipline."
Most Popular Articles
From the Career Center
Jobs that may interest you