One of China’s big state-owned oil companies, Cnooc Ltd., plans to raise more than $5 billion from a domestic share sale as it faces a possible delisting of its U.S. securities.

The planned issuance—like a recent megadeal by China Telecom Corp.—shows that China’s corporate champions are able to access large pools of capital back home if needed, blunting the impact of being exiled from American markets.

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One of China’s big state-owned oil companies, Cnooc Ltd. , plans to raise more than $5 billion from a domestic share sale as it faces a possible delisting of its U.S. securities.

The planned issuance—like a recent megadeal by China Telecom Corp. —shows that China’s corporate champions are able to access large pools of capital back home if needed, blunting the impact of being exiled from American markets.

More broadly, a growing number of Chinese companies are raising funds on the mainland or in Hong Kong, hoping to tap investors who are more familiar with their businesses and willing to pay a premium for their shares.

Cnooc aims to raise 35 billion yuan, or the equivalent of $5.4 billion, it said in a statement late Sunday to the Hong Kong stock exchange, where it is already listed. The new shares would be listed on Shanghai’s stock exchange and the funds would largely be used to finance the development of various oil fields, Cnooc said.

In February, the New York Stock Exchange began the process of delisting Cnooc, and in March it suspended trading in the company’s American depositary receipts.

The NYSE action was taken to comply with an investment blacklist introduced under former President Donald Trump, which bars Americans from investing in Chinese companies that the U.S. says aid China’s military, intelligence and security services.

Cnooc said in March it had appealed the NYSE delisting decision, and in its first-half financial report published on Sept. 1, it said the review was in progress.

In May, China’s three big telecom carriers lost their own appeals against being delisted. One of the three, China Telecom Corp., has since raised 47.9 billion yuan, or about $7.4 billion, from a Shanghai share sale, while larger rival China Mobile Ltd. is preparing a similar offering.

Cnooc didn’t disclose a planned price for the offering, but said it planned to issue up to 2.6 billion new shares. Its Hong Kong shares stood 5.2% higher by early afternoon local time, at 8.50 Hong Kong dollars per share.

Citic Securities Co. Ltd. is sponsor and lead underwriter for the Cnooc deal.

Write to P.R. Venkat at venkat.pr@wsj.com and Quentin Webb at quentin.webb@wsj.com