Sunshine rises in Hong Kong

Calgary-based company to list $600-million initial public offering

Sunshine Oilsands Ltd., the Canadian company backed by Chinese investors, is set to launch a $600-million US initial public offering on the Hong Kong Stock Exchange, according to the Financial Times.

“The company plans to sell a 25 per cent stake in the offering, according to people close to the deal, with the shares due to start trading by the end of February,” the Financial Times reported.

“It would be the biggest IPO so far this year anywhere in the world, according to Dealogic.”

Sunshine has previously looked to China for cash. Last March, Chi- nese investors put up nearly all of the firm’s round of $230 million in equity financing, including China Life Insurance (Overseas) Company Ltd., Bank of China Group Investment Ltd. and Cross-strait Common Development Fund Co.

The Calgary-based company announced in April 2010 that it had decided to list on the Hong Kong exchange instead of the Toronto bourse, raising eyebrows over growing Chinese influence over Canadian energy companies.

Sunshine holds significant oilsands leases in the Athabasca oilsands region, owning and controlling 100 per cent of 464,531 hectares of leases, equivalent to about seven per cent of the total oilsands leases granted in the Athabasca region, according to the company. Sunshine will be the only Canadian oil and gas company listed in Hong Kong.

The privately held oilsands company has been gearing up for the bid for some two years, to finance resource development on its vast land position in northern Alberta. With last week’s approval in hand from Alberta Energy to develop the first 10,000 barrels of bitumen per day of its 100,000-barrelper-day proposed West Ells in situ oilsands project, all Sunshine needs to start producing is financing.

Sunshine is attempting to tap into significant Chinese interest in the oilsands.