China’s top crude oil importer Sinochem Energy is ready to launch an initial public offering (IPO) on China’s Shanghai Stock Exchange, as it seeks to beef up its refining capacity.

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The company is aiming to raise 11 billion yuan ($1.7 billion) in proceeds, of which 7 billion yuan will be used to finance a refining and petrochemicals plant in Fujian province, China, according to the prospectus.

Of the total funds, 25% — or 6.29 billion yuan — will be raised through the issuance of public shares.

Sinochem Energy contributed 80% of the 574.7 billion yuan revenue earned by its parent Sinochem in 2019. In the first three quarters of last year, the company’s revenue came to 209.8 billion yuan, with 1.2 billion yuan profit.

It is one of the five companies with licences in China to import crude oil. It has signed term contracts with foreign crude supplier to import 70 million tonnes (about 515 million barrels) of crude oil per annum.

As one of China’s oil products retailers, the company owns and operates 602 gasoline stations and franchises another 766.