Sinopec Engineering Said to Raise $1.8 Billion in Hong Kong IPO

By Fox Hu

Sinopec Engineering Group Co., a unit of China’s biggest refiner, raised $1.8 billion in an initial public offering in Hong Kong, according to two people with knowledge of the matter.

The Beijing-based unit of China Petrochemical Corp. sold 1.33 billion shares at HK$10.50 each, said the people, asking not to be identified because the information is private.

The sale brings the value of Hong Kong IPOs in May to $2.9 billion, the highest monthly total since November, when People’s Insurance Company (Group) of China Ltd. raised $3.6 billion, data compiled by Bloomberg show. Companies completed $1.1 billion of initial share sales in Hong Kong in the first quarter, the least since early 2009, the data show.

Sinopec Engineering’s shares were originally offered at HK$9.80 to HK$13.10 each, according to a prospectus. The offering range was narrowed to HK$10.50 to HK$11 a share, people with knowledge of the matter said yesterday. The company plans to start trading on May 23.

An external spokeswoman for Sinopec Engineering declined to comment on the final price.

Wison Engineering Services Co. (2236), a Chinese provider of engineering and construction services for the petrochemical industry, raised $239 million from a Hong Kong IPO in December. The company has rallied about 49 percent from its offer price and trades at 11.4 times estimated 2013 profit, data compiled by Bloomberg show.

To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

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