CIC, Sinopec among investors in oil sands IPO: source

Tue Feb 7, 2012 7:40am EST
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By Elzio Barreto

HONG KONG (Reuters) - Sovereign wealth fund China Investment Corp (CIC) CIC.UL and state refiner Sinopec are among the three cornerstone investors to pledge $350 million toward Canadian oil explorer Sunshine Oilsands Ltd's Hong Kong IPO, a source with direct knowledge of the matter said.

The three institutions are taking up nearly half of Sunshine Oilsands' planned $700 million initial public offering (IPO), the source told Reuters on Tuesday. The offering will be the biggest stock market float in the world so far this year.

CIC and China Petrochemical Corp (Sinopec Group), parent of listed China Petroleum & Chemical Corp (Sinopec) (600028.SS: Quote) (0386.HK: Quote) (SNP.N: Quote), have each agreed to buy $150 million worth of shares in Sunshine Oilsands, the source said.

Washington-based asset manager EIG Global Energy Partners pledged $50 million, the source added.

Cornerstone investors back many Asian listings, committing to buy large, guaranteed stakes and agreeing to a lock-up period during which they will not sell their shares.

The source was not authorized to speak publicly about the matter. Both CIC and Sinopec were not available for immediate comment. Sunshine and EIG could not be reached immediately.

The IPO will consist of all new shares, representing 25 percent of the company's expanded capital, one source with direct knowledge of the plans previously told Reuters.

Calgary-based Sunshine Oilsands owns 1.14 million acres of oil sand leases in the Athabasca region in Canada's Alberta province.   Continued...