March 12, 2018 / 6:31 AM / 2 years ago

Sinochem plans $2 billion Hong Kong IPO of oil assets: IFR

FILE PHOTO: The logo of Sinochem is seen outside an office building in Beijing, China February 21, 2017. REUTERS/Damir Sagolj/File Photo

HONG KONG (Reuters) - China’s Sinochem Group has invited banks to pitch for roles in a proposed Hong Kong listing of its key oil assets, which could raise about $2 billion, IFR reported on Monday, citing three people with knowledge of the matter.

The planned IPO for the state-owned group’s energy unit will likely include its oil refining, oil trading, storage and logistics, as well as distribution and retail businesses, said IFR, a Thomson Reuters publication.

A valuation for the energy unit was not immediately available.

The float comes amid a push by Beijing to inject new life into bloated state-owned enterprises by encouraging private capital investment in the enterprises.

Representatives for Sinochem did not immediately respond to a request for comment.

Last October, Reuters reported that Sinochem had hired BOC International, CLSA and Morgan Stanley to work on a possible Hong Kong listing of its key oil assets.

The three banks are likely to be awarded senior roles on the IPO, according to IFR, which added that it was likely to hit the market in the second half of the year.

Reporting by Fiona Lau of IFR; Writing by Julie Zhu; Editing by Edwina Gibbs

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