Sinopec Unit Said to Start Gauging Demand for Hong Kong IPO
Sinopec Engineering Group Co., a unit of China’s biggest refiner, has started gauging demand for an initial public offering in Hong Kong which may raise as much as $2 billion, said two people with knowledge of the matter.
The Beijing-based unit of China Petrochemical Corp. may sell shares at 10 times to 15 times estimated 2013 earnings, the people said, asking not to be identified because the information is private. The company aims to start trading early next month, they said.
Sinopec Engineering builds facilities and provides oilfield services, according to Sinopec Group’s website. Wison Engineering Services Co., which raised $239 million from a Hong Kong IPO in December, trades at about 10 times estimated 2013 profit, data compiled by Bloomberg show.
An external spokeswoman for Sinopec Engineering declined to comment on the IPO. IFR reported yesterday that the IPO may raise more than $2 billion. Earlier this month people with knowledge of the matter said Sinopec Engineering may raise about $1.5 billion.
Citic Securities Co., JPMorgan Chase & Co. and UBS AG are among banks arranging the offering, the people said.
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