Sinopec considers IPO for retail arm

The state-run China Petroleum & Chemical Corp (Sinopec), was this week reported to have dusted off plans for an IPO of its gas-station and convenience-store retail business. According to unnamed sources, Sinopec, which is  itself  listed in Hong Kong and also trades on the  Shanghai and New York stock exchanges, has asked banks to submit proposals by this month for roles to manage a potential Hong Kong listing of Sinopec Marketing Coin in 2017.
 Sinopec shares jumped by 4.3% on the news.
The company first looked at a separate listing for the subsidiary, which  runs 30,500 branded  fuel stations and a network of convenience stores in 2014, when  it sold a 29.99% to a group of investors including China Life Insurance Co and billionaire Guo Guangchang’s Fosun International Ltd for $15.5bn. “Low crude prices and a shaky stock market in Hong Kong this year were the reasons Sinopec hasn’t tried aggressively to list,” Anna Yu, a Hong Kong-based analyst at China Merchants Securities (HK) Co, said on Wednesday. “It looks more reasonable now for them to try next year if oil prices rise and the appetite for IPOs recovers as many expect.”
It is also being suggested that the move may have been driven by outside shareholders who feel that the company’s retail businesses  – particularly its non-fuel Sinopec Easy Joy chain – are undervalued and that spinning them off would enhance their value. 

Source: china