Sinochem Energy, a unit of China's state-owned Sinochem Group, has filed for a Hong Kong initial public offering (IPO) of about $2 billion, as the group seeks to raise capital amid a shift to higher-value businesses, including petrochemicals production.
Sinochem Energy operates the group's oil and petroleum products trading, refining, storage and logistics, as well as distribution and retail businesses, but not its struggling upstream business that includes overseas oil and gas production.
Reuters reported in April that the group had hired seven banks for the listing of its key oil assets that was expected to raise about $2 billion.
The proposed float comes amid a push by Beijing to inject new life into bloated state-owned enterprises by encouraging private capital investment in such enterprises.
China Tower, the world's largest telecoms tower operator, for example, is raising up to $8.7 billion in its Hong Kong listing. The state-owned firm has secured $1.4 billion from 10 cornerstone investors.
Beijing is also looking to create bigger, stronger state firms, and build globally competitive enterprises.
Sinochem Group is set to merge with state-owned ChemChina, which in 2016 agreed to buy Swiss pesticides and seeds group Syngenta for $43 billion.
The Sinochem-ChemChina deal will create the world's biggest industrial chemicals firm worth around $120 billion, to be led by Sinochem Chairman Frank Ning.
Sinochem Energy's IPO plans have been pushed ahead by Ning, who joined its parent group in early 2016 from food group COFCO, where he was well known for aggressive restructuring and M&A.