Sunshine Oilsands, a Calgary-based oil explorer backed by Chinese state-owned enterprises, has delayed the launch of a planned up to $700 million initial public offering in Hong Kong.
The IPO was expected to be the biggest new listing in Asia this year, The Wall Street Journal said on Saturday.
Wall Street Journal (sub required) reports:
The company, which started gauging investor interest in the IPO on Jan. 30, was slated to start taking orders Monday, but has now postponed its roadshow because it aims to broaden the investor base by attracting investors in Canada where investors are savvier about resource technologies, another person familiar with the situation said.
The Canadian oilsands have attracted some serious interest from Chinese companies wanting to lock in oil supplies to feed China’s surging economy.
Last year China Petrochemical Corp. purchased a 9% stake in the Syncrude project for US$4.65 billion. In 2009, PetroChina snapped up a stake in Athabasca Oil Sands Corp. for C$1.9 billion.
The pipeline, currently the subject of public hearings and facing fierce resistance from environmental and native groups, will have the capacity to export approximately 525,000 barrels of oil per day to a new marine terminal in Northern British Columbia where up to 200 tankers per year would carry crude to market in China, Singapore and Korea.