China National Offshore Oil Corporation Limited: Overseas IPO (A)

Shengjun Liu

    Research output: Other contributionCase Studies

    Abstract

    In October 1999, with CNOOC Ltd.’s IPO only 55 hours away, the lead underwriter suggested cancelling the IPO due to under-subscription. After enormous IPO preparations, the failure was unacceptable to everyone at CNOOC. Management at the large Chinese SOE—which had grown out of the giant Chinese SOE CNOOC and had healthy net assets and few of the typical SOE burdens—decided to regroup shortly after the setback. As Chairman and CEO of CNOOC Ltd., Wei Liucheng had a reputation for conducting many reforms with Chinese characteristics, and going public was supposed to help CNOOC go further down this road. However, it seemed CNOOC Ltd. had been too optimistic about its strengths, and overseas investors generally worried about Chinese SOEs’ corporate governance. The under-subscription caused many people to reflect and debate on the reasons for the failure, especially pricing. Management of CNOOC desperately needed guidance before taking their next step.
    Original languageEnglish
    Number of pages23
    Publication statusPublished - 1 Jan 2000

    Case number

    ACC-14-009

    Case normative number

    ACC-14-009-CE

    Case type

    Field

    Update date

    2016-06-17

    Published by

    China Europe International Business School

    Keywords

    • CNOOC
    • IPO(Initial public offering)
    • Petroleum Industry
    • Pricing
    • Road Show
    • State-Owned Enterprise (SOE)

    Case studies discipline

    • Accounting
    • Strategy
    • Finance

    Case studies industry

    • Mining, Quarrying, and Oil and Gas Extraction

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