China Oilfield Services Ltd (COSL) is planning to raise HKD5.88bn ($758.2m) through the private sale of new shares.

COSL will sell 276.3m Hong Kong-listed shares at HKD21.30 each, according to a filing with the stock exchange on 7 January.

The company believes that the placing would broaden the shareholder base of the company and raise capital for its future business development.

COSL expects to receive net proceeds of HKD5.82bn after commissions and expenses, and the proceeds will be used for general corporate purposes.

Gordon Kwan, head of regional oil and gas research at Nomura Securities, quoted COSL cfo Li Feilong as saying during an analysts conference call that it did not rule out buying secondhand drilling rigs, South China Morning Post reported.

Li was reported saying that new offshore opportunities in Mexico arose after the country recently opened up to foreign investment in exploration and development.