Energy and chemical giant Sinochem of China plans to raise up to 35 billion Yuan ($5.5 billion) through a public floatation of shares, which would make it the biggest such offering in the country this year.

The company will use the proceeds to finance a 12 million metric-ton-a-year, or 241,000 barrel-a-day, oil-refining project in Quanzhou in Fujian Province, it said in a statement to China's ministry of environment.

Bloomberg reported that if Sinochem, the fourth largest energy firm in China, can raise the $5.5-billion it would mark the sixth biggest IPO in Chinese history.

However, some analysts are skeptical that Sinochem can raise the kind of money it seeks.

The market may not get very excited about a listing, said Ao Chao Wang at UOB Kay Hian in Shanghai, according to BBC.

Additionally the market demand is not that strong at the moment.

However, Sandy Mehta, chief executive officer at Hong Kong-based Value Investment Principals Ltd., told Bloomberg: “This will open up the floodgates for IPOs. [Chinese stocks] are very cheap in terms of valuation, and the bearishness on the economy and banks is way overdone. China has now stopped tightening.”

Moreover, Shi Yan, a Shanghai-based energy analyst at UOB-Kay Hian Ltd., told Bloomberg: “The key is China’s policy changes when Sinochem’s Fujian plant is completed in a couple of years. If higher retail prices are allowed, the plant will be very profitable.”

Just last month, Sinhohydro Group Ltd., the biggest hydroelectric dam-builder in China, raised 13.5 billion yuan ($2.1 billion) in a share sale – which was the biggest IPO in the nation so far this year.

Still, Sinohydro shares have fallen almost 7 percent since they began trading on October 18.

On the whole, the benchmark Shanghai Composite Index has slipped 11 percent this year.

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