Sinopec unit in talks with key IPO investors

Sinopec Engineering Group, an arm of state-owned energy major China Petrochemical (also called Sinopec Group), is in talks with at least three cornerstone investors to pave the way for its initial public offering, The Wall Street Journal reported, citing anonymous sources close to the deal. Two of the cornerstone investors in the IPO, which seeks to raise up to US$2.7 billion, are China Aerospace Science and Technology, a state-owned aerospace and defense contractor, and insurance giant People’s Insurance Company of China (PICC; 1339.HKG), the sources said. The company is slated to list May 23 and would be Hong Kong’s largest float since November.