CNOOC completes upsized Shanghai listing: press

CNOOC has arrived on the Shanghai stock exchange in a public listing that saw its share price rise 28.8% by the end of its maiden day of trading, Reuters reported on April 21.

The listing generated 28.1bn yuan ($4.4bn) for the Chinese oil and giant that will be used as capital expenditure for eight oil and gas projects in China and overseas. Proceeds will also help fund CNOOC's general capital expenses.

CNOOC shares began the day 20% higher than the offering price, before a 30-minute trading suspension was imposed due to stocks hitting the upper market threshold for new listings.  Once the suspension had ended, the stock continued to climb and at one stage rose 44% higher than the opening price.

CNOOC was previously listed in New York but was barred after Washington blacklisted the company for alleged ties to the Chinese military – a claim the company denies.

Analysts speculated CNOOC had benefited from high oil prices and investor appetite for big cap stocks with modest valuations. Cinda Securities analyst Chen Shuxian called the Shanghai listing a "historic" opportunity. He predicted in a research note that its market cap could rise two-fold within the next few years.

Reuters said CNOOC's Shanghai debut was currently the 11th-biggest in Chinese history. A green shoe share allotment could yet see it enter the top 10, if the allocation is fully exercised. Reuters said green shoe shares were priced at 10.8 yuan, 23.88 times earnings or 1.05 times net assets.