Sinochem is looking to raise US$5.5 billion through an initial public offering on the Shanghai stock exchange, in what would be mainland China’s largest IPO this year, Bloomberg reported. In a statement posted on the Ministry of Environmental Protection’s website Thursday, Sinochem said it would look to issue as much as 26.5 billion new shares, with the capital to be used for a refinery in eastern Fujian province. The company, China’s biggest supplier of chemical products and its fourth-largest oil company, is already the parent of several listed subsidiaries, including agricultural and property companies. “This will open up the floodgates for IPOs,” said Sandy Mehta, Hong Kong-based CEO at Value Investment Principals. The IPO could signal a turnaround for slumping markets in mainland China; the benchmark Shanghai Composite Index has fallen 12% this year due to tighter monetary policy.