Sinopec Plans to Sell Shares in Its Giant Marketing Unit

The approval from Chinese officials was deemed significant as it demonstrated a willingness to open the state-owned companies to share some ownership with private investors.

CapitalWatch Staff
    Jan 16, 2019 4:52 PM  PT
Sinopec Plans to Sell Shares in Its Giant Marketing Unit
author: CapitalWatch Staff   

China Petroleum and Chemical Corp. or Sinopec, (NYSE: SNP) is planning an initial public offering for its Sinopec Marketing Co. subsidiary in Hong Kong, according to a report by S&P Global. 

The state-run company, the world's largest refiner, received approval from China's State Council to float its unit's shares, splitting off what could be one of the largest fuel distribution companies in the world, the publication said.

 "We expect that Sinopec will list 10% equity in the marketing division," Neil Beveridge, senior analyst with Bernstein Research said in a report, S&P Global reported. "The listing will likely comprise of new shares issued by the company." Beveridge estimated that Sinopec Marketing could be worth more than $60 billion. 

The approval from Chinese officials was deemed significant as it demonstrated a willingness to open the state-owned companies to share some ownership with private investors. 

Sinopec controls nearly one-third of all gas stations in China, operating more than 30,000 locations. 

Shares in Sinopec closed today at $78.86 in New York, up more than 1 percent, or 95 cents per share.

YOU MAY LIKE