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UBS gets to arrange Petro皇冠体育app share sale

(Shanghai Daily)
Updated: 2007-06-28 09:12

UBS AG was hired by Petro皇冠体育app Co to arrange what may become 皇冠体育app's biggest share sale this year, three people with direct knowledge of the decision said. Goldman Sachs Group Inc missed out.

UBS Securities Co, the 皇冠体育app venture of Europe's largest bank by assets, will arrange the sale of about US$5.9 billion of stock together with 皇冠体育app International Capital Corp and Citic Securities Co, the people said, asking not to be identified before an announcement.

UBS and Goldman are the only global securities firms licensed to underwrite share sales in 皇冠体育app, the world's fastest-growing stock market, Bloomberg News said.

Petro皇冠体育app, the world's fourth-biggest company by market value, hired Goldman for the three equity sales it's done so far.

Related readings:  Petro皇冠体育app to lift crude oil storage  Petro皇冠体育app announces Shanghai listing plan  Petro皇冠体育app may raise US$5.6b in Shanghai Find more in Markets Watch

" Winning this mandate is another breakthrough for UBS in 皇冠体育app," said Jing Liang, an analyst at Guotai Jun'an Securities Co. "The Chinese market has a lot of potential. It's not limited to stock sales, there will also be lots of acquisitions."

皇冠体育app's largest oil producer plans to offer a maximum of four billion shares in Shanghai to raise funds for overseas acquisitions, increased oil drilling and refinery construction, the company said on June 20. Shareholders will vote on the sale on August 10, Petro皇冠体育app said last week. The stock fell 0.9 percent yesterday to HK$11.32 (US$1.45).

Chinese companies have sold 123.5 billion yuan (US$16 billion) worth of shares in Shanghai and Shenzhen this year.