Sinopec IPO back on the table
China
BEIJING, December 14, 2016 – Sinopec is once again considering an IPO of its retail business. If the state-owned giant goes ahead with the plans, the offering is expected to be worth as much as USD 10 billion.
According to Bloomberg on Wednesday, the company is currently in talks with banks regarding a possible listing on the Hong Kong stock exchange in 2017. In response to the speculation, Sinopec’s shares increased 4.3%, to HK 5.86 (USD 0.76) on Wednesday.
Plans to make an IPO were originally tabled in 2014, when the company sold a 29.99% stake to China Life Insurance and Fosun International. Sinopec has more than 30,500 fuel stations. Its annual report listed a 9.8% gain in petrol sales in 2015.
Selling off a portion of the business should allow Sinopec to operate more efficiently and give it greater ability to to meet government targets. News of the possible IPO comes on the heels of Sinopec’s divestment from the Sichuan-East China gas pipeline. The company sold a 50% stake to SDIC’s transportation arm and China Life Insurance for USD 3.3 billion.
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