Chinese tanker operator completed private placement program to expand fleet.
Shipowner China Merchants Energy Shipping (CMES) is poised for a big VLCC order as oil company Sinopec injects share cash.
CMES, one of the largest tanker operators in China, announced last August that it would issue 858.3m shares to some major companies to raise CNY 2.9bn ($458m) for a fleet expansion programme. The company has successfully completed the private placement programme as planned, according to the filing.
CMES has banked CNY 2.89bn from a rights issue that has seen Sinopec build its stake to 19.32%, up from 9.85%.
Sinopec subscribed for 491m out of a total of 858m shares offered.
China Life Insurance and a subsidiary of Sinochem Corporation also subscribed for 214m shares and 153m shares respectively.
Including those funds, the company said in August that it plans to spend CNY 5.6bn on vessel acquisitions.
CMES can now move ahead with plans to order 10 new tankers, including VLCCs.
VLCCs in China could cost it around $90m each. State-owned Guangzhou Longxue Shipyard and Dalian Shipbuilding Industry are understood to be the favorites for at least two vessels each.