CNOOC placement draws strong demand amid surging oil prices

Analysts speculate about further acquisions as oil giant sells $1.98 billion in mostly new shares.

By Anette Jönsson

April 27, 2006

Hong Kong-listed CNOOC Ltd has raised a total of HK$15.38 billion $1.98 billion from its first follow-on share sale since it listed in February 2001, which the company said it will use for capital expenditures. Analysts, however, believe the money is aimed at beefing up its cash reserves ahead of further overseas acquisitions.

The sale, which marked the largest overnight block-trade in Asia so far this year and the second largest equity offering after Lotte ShoppingÆs $3.74 billion IPO, was jointly arranged by Credit Suisse, Goldman Sachs and JPMorgan.

Demand was extremely strong even though CNOOCÆs is trading very near its record highs and the deal, which ended up being priced...

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