Sino Australia Oil & Gas Ltd., a Chinese drilling services company, said it needs six to 10 more weeks to complete a proposed initial public offering in Sydney to give Asian fund managers more time to decide to buy shares.
Sino Australia is seeking an extension from the Australian Securities and Investments Commission for its planned share sale to raise as much as A$20 million ($18 million), the company said today in an e-mailed statement. The company previously expected the offer to be completed by July 5, it said.
“Recent market volatility was cited as the reason Asian-based fund managers were not able to complete investment mandates,” the company said. Sino Australia expects to complete the share sale at its A$20 million target if the extension is given and the “markets continue to gain positive momentum,” it said.
Sino Australia, focused on the Daqing oil fields of northern China, plans to sell stock in Australia to give local investors exposure to China’s surging energy demand. The company has received commitments to buy 24 million shares at 50 cents a share to raise a minimum of A$12 million, and hopes to sell a further A$8 million in shares, it said.