Sunshine Oilsands Offers Shares in $605M IPO

Sunshine Oilsands Ltd. (2012) today begins offering shares in an initial public offering to raise as much as HK$4.69 billion ($605 million), the holder of Canadian oil- sand leases said.

Sovereign wealth fund China Investment Corp (CHININC). and China Petroleum & Chemical Corp. (600028), or Sinopec, are among cornerstone investors in the IPO, Calgary, Alberta-based Sunshine said in a release yesterday. The shares will be offered for between HK$4.86 and HK$5.08 apiece, and are expected to begin trading on Hong Kong’s stock exchange March 1, it said.

Hong Kong’s Hang Seng Index has gained 17 percent since Dec. 31, its best start to a year in more than a decade and following a 22 percent drop in 2011, data compiled by Bloomberg show. Sunshine’s fundraising would be the biggest IPO in Hong Kong this year, the data show.

Sunshine is also backed by China Life Insurance Co., Bank of China Group Investment Ltd. and Cross-Strait Common Development Fund Co., according to the statement.

Asked if Petronas, Malaysia’s national oil firm also known as Petroliam Nasional Bhd., would be an investor in Sunshine, Michael Hibberd, co-chairman and executive director, said he was unable to comment. Petronas has been in talks to buy Sunshine shares, Reuters reported, citing people familiar with the situation.

The global offering is for 923.3 million shares, with 92.3 million reserved for Hong Kong investors, according to the statement. At the top end of the range, the market capitalization of Sunshine would be HK$14.4 billion, it said.

The public offering opens for subscription today and closes on Feb. 23, with allotment results to be announced Feb. 29, it said.

BOC International Holdings Ltd., Deutsche Bank AG and Morgan Stanley are managing the sale.

To contact the reporter on this story: Benjamin Garvey in Hong Kong at bgarvey8@bloomberg.net.

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net

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