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Dow Jones Newswires: China oil giant CNOOC to raise at least $4.4 billion in Shanghai listing

One of China’s biggest oil companies, CNOOC Ltd.
plans to raise $4.41 billion from a Shanghai listing, after its shares were delisted from the New York Stock Exchange.

The state-owned company is selling a total of 2.6 billion shares for 10.80 yuan (US$1.70) a share, it said Monday.

If the company exercises an over-allotment option, which is an additional 390 million shares, the total amount raised from the domestic offering will be $5.07 billion.

CNOOC ‘s share sale–like a recent megadeal by China Mobile–shows that China’s corporate champions are able to access large pools of capital back home if needed, blunting the impact of being exiled from American markets.

In January, China Mobile Ltd., which was also booted from the NYSE last year, had raised close to $9 billion in a Shanghai stock-offering. China Mobile’s

offering followed a similar fund raising by its peer China Telecom Corp.

last May.

The NYSE began the process of delisting CNOOC and other Chinese companies in February 2021, and the American depositary receipts of some companies were delisted from the NYSE in October.

The action by the NYSE was taken to comply with an investment blacklist introduced under former President Donald Trump, which bars Americans from investing in Chinese companies that the U.S. says aid China’s military, intelligence and security services.

CNOOC ‘s Hong Kong-listed shares were quoted at 11.66 Hong Kong dollars ($1.49) a share on Friday.

Funds raised from the Shanghai listing would largely be used to finance the development of various oil fields.

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