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

CNOOC’s overseas IPO failure had cast doubt on its newly implemented reforms, especially the reorganization of CNOOC. After the failed attempt, the company announced that it would not change its reform direction. Before launching the second IPO attempt, the company publicly released its ownership structure and corporate governance information; it sought to adopt the level of transparency expected of a listed company. The second attempt involved other tactics as well, such as a new pitch, a different growth plan, and a revised pricing strategy—and it was a huge success. Taken together, Cases (A) and (B) deliver the full story of CNOOC’s IPO failure and success, including the uniquely Chinese characteristics at play.