SINGAPORE (BLOOMBERG) – Oriental Energy Co, China’s biggest importer of liquefied petroleum gas, is considering an initial public offering of its trading and logistics unit on the Singapore stock exchange.
The company is in discussions with the exchange and the city-state’s government about the share sale for its subsidiary Oriental Energy (Singapore) International Trading Pte, according to an official at Nanjing-based Oriental.
Other locations are being considered for the planned IPO including Hong Kong, said the official, who asked not to be identified due to company policy.
“Oriental Energy is keen to further tap into the global capital markets,” the company said in an e-mailed response to questions. “A potential IPO in the future, if proved strategic, will not be ruled out.”
Oriental Energy operates four import terminals in China for LPG, which is used for cooking and to make plastic. The company imported about 5 million tonnes of the fuel last year, more than a quarter of the country’s overseas purchases, according to the official, who declined to provide details on the timing of the share sale as discussions are at an initial stage.
Singapore is an emerging LPG trading hub and the city-state could be a good IPO location given its growth potential and business integration with other countries in the region, the official said, adding that its unit trades more than 20 cargoes a month.