Kunlun Energy pockets $1.35 billion from top-up placement

Kunlun Energy has raised HK$10.48 billion $1.35 billion from a top-up placement of new shares as it seeks to accelerate the expansion of its liquefied natural gas business. The deal is the first ECM transaction in Asia in the second quarter, and encouragingly it made money for investors straight away, setting a positive trend that should make it easier to push out other trades in the pipeline.

The company is controlled by PetroChina, which is China’s largest producer of oil and gas, and listed in Hong Kong as a red-chip. Kunlun, which until March 2010 was known as CNPC, is involved in exploration and development of oil...