HONG KONG China Petroleum and Chemical Corp (Sinopec) has mandated six banks to advise it on a restructuring of its fuels distribution unit ahead of a planned initial public offering in Hong Kong, IFR reported on Wednesday, citing people close to the deal.
Sinopec tapped China International Capital Corp Ltd (CICC), China Merchants Securities Co Ltd, CITIC Securities Co Ltd, Citigroup, Goldman Sachs and Morgan Stanley for the financial advisory role, added IFR, a Thomson Reuters publication.
The company had invited 14 banks to pitch for the role, people close to the deal previously told Reuters.
The advisers will help the unit, Sinopec Marketing Co Ltd, transition from a limited liability company, which has less than 50 shareholders, into a corporation that can have a multitude of investors and a board of directors, among other things, one person said.
The IPO could raise about $12 billion, a separate person said, though the value is subject to market conditions at the time of the listing.
China Merchants Securities, CICC, Citigroup and Goldman declined to comment, while Sinopec, CITIC Securities and Morgan Stanley did not reply to a Reuters request for comment on the advisory role and restructuring of Sinopec Marketing.
Sinopec Marketing was valued at about $58 billion when it sold a 30 percent stake to a group of 25 investors for $17.5 billion in 2014 in what was hailed at the time as the country's biggest privatisation since President Xi Jinping came to power.
The company operates fuel stations and more than 23,000 convenience stores around the country.
(Reporting by Fiona Lau of IFR; Additional reporting by Elzio Barreto and Julie Zhu; Editing by Muralikumar Anantharaman and Stephen Coates)