In line with the recent euphoria on return of H Shares to the domestic markets, the issue of A Shares by COSL received encouraging responses as originally expected. The domestic offer froze an aggregate RMB2, 172.9 billion in the local banking system, a new record in China's equity history, of which RMB 1,744.9 billion was attributable to public offer and while the remaining RMB428 billion came from institutional placement. The offer price was finally set at RMB13.48 per share, translating into a price-to-earnings multiple of 33.03 times on a fully diluted bases (based on prospective 2007 earnings). Following application of the claw-back mechanism, the allotment percentage for the public offer was 0.27039123% while that for the institutional placement was 0.472%. With the public offer 370 times oversubscribed, COSL has received very solid endorsement from investors for its core competences, high growth and outstanding investment value.
The A Share listing ceremony held this morning on the Shanghai Stock Exchange was attended by relevant government officials including representatives from Tianjin Branch of the China Securities Regulatory Commission and the Office of Financial Affairs under the Tianjin Municipal Government, leading personalities in the oil sector, professional intermediaries and members of the press. COSL Chairman Fu Chengyu, CEO and President Yuan Guangyu hit the gong signaling trading commencement.
Mr. Fu told other attendees of the listing ceremony that as the largest offshore oilfield services provider in China with the most comprehensive functionalities, the most complete service chains and the best integration capabilities in Asia, COSL considers its successful A Share listing a new around of assessment on its capabilities, preparing itself for challenges going forward.
Mr. Yuan said in interviews with domestic media that he believes the oil industry in China has a bright future. As COSL accelerates its alignment with international best practices in the recent years, he is confident that by 2020 COSL will evolve into a world-class integrated oilfield service provider.
COSL debuted its A Share trading at RMB35.00 and rose a hefty 195.9% to end the day at RMB39.90.
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