(Chinadaily.com.cn)
Updated: 2007-07-18 14:32

PetroChina, China's largest oil and gas group, is targeting a share offering in the fourth quarter of this year, although the timetable depends on how quickly it can gain approval from the Chinese securities regulator, the Financial Times reported.

The latest large State-owned company is expected to offer as many as 4 million new shares. It is poised to use the funds raised to buy oil and gas resources overseas and fund exploration and development projects at home.

It has chosen UBS to help raise up to US$6 billion in what is poised to be one of the biggest listings on the country's mainland market. PetroChina's offering is likely to fall just short of the biggest mainland initial public offerings (IPOs), by Industrial and Commercial Bank of China, which raised US$6.1 billion last year.

The deal highlights UBS' determination to grab a big slice of the Chinese public offering market after securing control of a Chinese brokerage, which gave it the license to arrange mainland share offerings, five months ago.

The Swiss bank last week handled the initial public offering of Western Mining, a Chinese lead and zinc producer, which surged 144 per cent on its first day of trading. UBS was the sole manager of the Western Mining IPO but is expected to work together with local firms on the PetroChina listing – which still requires regulatory and shareholder approval.

China has been trying to persuade large Chinese companies listed in Hong Kong and other overseas markets to sell shares on the Shanghai market. China Mobile is among other large companies that are eyeing a Shanghai listing. If it goes ahead, the telecom company's IPO would almost certainly set a new record in terms of size.