CNOOC to play it safe with IPO

In uncertain global equity markets, China National Offshore Oil Corporation (CNOOC) is to adopt a cautious stance with its $1.2 billion to $1.5 billion Hong Kong and New York Stock Exchange flotation.

In particular, one of the company's key selling points - the revenue-sharing rights for which it receives 51% of any profitable offshore discoveries made by foreign partners - have been accorded no monetary worth in the $7 billion to $8.5 billion Net Asset Value NAV attached to the company.

As one market observer explains It's been decided to make this the icing on top of the cake instead. The revenue-sharing rights are a very important part of what makes the company so successful, but they're also a very intangible option since it's almost impossible to extract value from yet-to-be-realized potential. It will be a sweetener for investors, whereas...

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