April 3 (Bloomberg) -- Kunlun Energy Co., a Chinese gas supplier controlled by PetroChina Co., is seeking about $1.4 billion in a stock offering to accelerate its liquefied-natural gas expansion.
A total of 800 million primary shares are being offered at HK$13 to HK$13.50 each, a discount of as much as 8.3 perent to its closing price yesterday, according to a term sheet for the sale obtained by Bloomberg News. At the high end of the range, the sale would fetch HK$10.8 billion ($1.4 billion).
The share sale comes as Kunlun seeks to become the country’s biggest onshore LNG supplier and producer within the next two years. It’s building 15 LNG plants in Chinese provinces and regions including Inner Mongolia, Xinjiang and Qinghai, according to a company filing last month.
Last week, Kunlun posted full-year sales of HK$25.4 billion and net income of HK$5.61 billion. Profit exceeded the average estimate of HK$4.85 billion from a Bloomberg News survey of eight analysts.
Kunlun’s Hong Kong-traded shares gained 28 percent this year, ourperforming the city’s benchmark Hang Seng Index, which rose about 11 percent. The stock gained 1.3 percent yesterday to close at HK$14.18, before the news.
To contact the reporter on this story: Zijing Wu in London at email@example.com
To contact the editor responsible for this story: Jacqueline Simmons at firstname.lastname@example.org