PetroChina hires UBS for domestic stock sale

PetroChina Company Limited (PetroChina) has hired UBS Securities Co. to help arrange its A share public offering in Shanghai this year, according to sources close to the deal.

UBS Securities Co., the China venture of Europe's largest bank in terms of assets, would probably co-underwrite the estimated 56 billion yuan PetroChina issue with CITIC Securities Co., China Galaxy Securities Co. Ltd. and China International Capital Co. Ltd., said a source, adding it could be the biggest stock sale in the country this year.

China's largest oil producer plans to offer up to four billion shares to raise funds for overseas acquisitions, exploration activities and building up of refinery capacity.

On the news of a large oil field discovery in northeastern China and soaring oil prices in the international market, UBS had raised the offer price from nine HK dollars to 14 HK dollars.

The Chinese company said in a statement released on June 20 that its shareholders would vote on the offering on August 10.

UBS helped arrange the Hong Kong IPOs of several Chinese companies including Bank of China, China Merchants Bank and China Communications Construction Group.

Meanwhile, the firm has introduced to China long-term investors from the Middle East.

PetroChina reported a fifth year of record profits at 142 billion yuan for 2006 with record oil and gas production. (1 HK dollars = 0.974 yuan, 1 U.S. dollar = 7.61 yuan)

Source: Xinhua