China BlueChemical Ltd., a fertilizer unit of China's biggest offshore oil producer, raised HK$2.66 billion ($342 million) in an initial public offering.

The company sold 1.4 billion new shares at HK$1.90 each, the top end of the HK$1.38 and HK$1.90 range marketed to investors. Shares in the Haikou, Hainan Province-based company will start trading in Hong Kong on Sept. 29.

The China National Offshore Oil Corp. unit is expanding to tap demand in China, the world's biggest consumer of wheat, rice and corn as the use of fertilizer increases. The company produces nitrogen fertilizers such as ammonia and urea, used to grow almost half of global crops. The share-sale price values the company at 9.7 times forecast 2006 net income.

Yara International ASA, the world's biggest fertilizer maker, agreed to buy 140 million shares in the IPO, seeking to expand in the world's biggest fertilizer market.

Source:佚名