SHANGHAI (Reuters) -Chinese oil giant CNOOC Ltd surged 44% in its Shanghai debut on Thursday, after raising 28.08 billion yuan ($4.41 billion) in China’s 11th-biggest public stock offering.
The stock started trading on the Shanghai Stock Exchange at 12.96 yuan, 20% higher than the offering price of 10.8 yuan.
Trading in the oil giant was suspended by the Shanghai Stock Exchange after hitting the upper limit of the daily allowable band for new listings, citing abnormal fluctuation, while Hong Kong-listed shares of CNOOC were up roughly 3%.
China’s largest offshore oil producer, CNOOC has said it would use the share sale proceeds to fund one gas and seven oilfield projects in China and overseas, and to replenish capital.
The Shanghai sale came after CNOOC was delisted in October by the New York Stock Exchange after Washington added the firm to a trade blacklist citing suspected connections to the Chinese military.
State-backed rivals PetroChina and Sinopec are already listed in Shanghai.
(Reporting by Jason Xue, Samuel Shen and Andrew Galbraith; Editing by Tom Hogue and Muralikumar Anantharaman)
