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Sinopec mandates six banks to advise on unit revamp ahead of IPO-IFR

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Reuters HONG KONG
Last Updated : Jan 04 2017 | 11:48 AM IST

HONG KONG (Reuters) - China Petroleum and Chemical Corp (Sinopec) has mandated six banks to advise it on a restructuring of its fuels distribution unit ahead of a planned initial public offering in Hong Kong, IFR reported on Wednesday, citing people close to the deal.

Sinopec tapped China International Capital Corp Ltd (CICC), China Merchants Securities, CITIC Securities Co Ltd, Citigroup, Goldman Sachs and Morgan Stanley for the financial advisory role, added IFR, a Thomson Reuters publication.

The company had invited 14 banks to pitch for the role, people close to the deal previously told Reuters.

The advisers will help the unit, Sinopec Marketing Co Ltd, transition from a limited liability company, which has less than 50 shareholders, into a corporation that can have a multitude of investors and a board of directors, among other things, one person said.

The IPO could raise about $12 billion, a separate person said, though the value is subject to market conditions at the time of the listing.

Sinopec and all the six banks didn't immediately reply to a Reuters request for comment on the advisory role and restructuring of Sinopec Marketing.

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(Reporting by Fiona Lau of IFR; Additional reporting by Elzio Barreto and Julie Zhu; Editing by Muralikumar Anantharaman)

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First Published: Jan 04 2017 | 11:34 AM IST

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