Bloomberg News March 16, 2017
China’s in talks with Saudi Arabia for its sovereign wealth fund and
largest energy company to invest in the initial public offering of the
Middle East nation’s state oil producer, according to people with
knowledge of the matter.
The nation’s $814 billion China Investment Corp.
would be the principle investor in the planned flotation by Saudi
Arabian Oil Co., according to the people, who asked not to be identified
because the talks are private. China National Petroleum Corp. may also invest in the IPO, they said. No formal agreement has been reached, according to the people.
Saudi King Salman bin Abdulaziz is visiting Beijing this week as the
world’s biggest oil exporter gears up for what may be the largest-ever
initial public offering. Hong Kong is among markets including London,
New York, Singapore and Tokyo that have been identified as possible
venues for the sale of 5 percent of the company, which is valued between
$400 billion and $2 trillion.
China, the world’s biggest energy user, is growing more reliant
on overseas crude as its domestic reserves dwindle and economic growth
spurs higher demand. President Xi Jinping said in a meeting with King
Salman that the nations should step up energy cooperation, Xinhua News
Agency reported Thursday, adding that the countries signed $65 billion
worth of memorandums of understanding during the visit.