Pilipinas Shell oil refinery lowers indicative offer price for IPO in PSE

Pilipinas Shell Petroleum Corporation decided to lower its indicative offer price for its planned initial public offering (IPO) in November.3 min

93 shares, 93 points
Pilipinas Shell IPO

Manila, Philippines – The Pilipinas Shell Petroleum Corporation decided to lower its indicative offer price for its planned initial public offering (IPO) in November.

Thomson Reuters publication International Financing Review (IFR) reported that the energy corporation’s indicative offer price is now priced at P64 to P70 pesos per share, from P90 pesos original plan.

Based on the new IPO offer price range, the Pilipinas Shell Petroleum Corporation will raise between P21.12 billion and P23.1 billion.

One source from the energy company also confirmed the new price range offer. The final announcement of Pilipinas Shell IPO offer price is scheduled for October 13.

The offer period for the the initial public offering in the Philippine Stock Exchange (PSE) has been tentatively set for October 26 to November 3, while the IPO listing date has been marked on November 10.

The unit of Royal Dutch Shell Plc (RDSa.L) earlier secured the regulatory approvals from the Securities and Exchange Commission (SEC) as well as the PSE to conduct its maiden share offering.

The firm will offer 300 million shares to the investing public in the PSE and another 30 million to cover the over allotment.

These represent around 18.6 percent of its outstanding capital stock. A total of 270 million shares will be sold by the selling shareholders from the 300 million primary shares, which include Shell Overseas Investments BV, The Insular Life Assurance Company Limited, and Spathodea Campanulata Incorporated.

While the another 30 million are primary shares and the proceeds from which will be used to finance capital expenditures, working capital, and general corporate expenses.

Pilipinas Shell stated that it aims to expand its retail network to 1,220 service stations by 2020, from the current 996 service stations as of end-June 2016.

At least 69 percent of total offer shares will be sold to foreign investors and cornerstone investors. While the 30 percent will be set aside for trading participants and local small investors. While the remaining 1 percent will be offered to Pilipinas Shell Petroleum Corporation’s regular employees.

The energy firm operates a 110,000-barrel-per-day oil refinery in Batangas, and it recently underwent an upgrade to deliver Euro 4 compliant fuels.

Pilipinas Shell, which operates one of the Philippines’ two oil refineries, is required in compliance with the two-decade old Oil Deregulation Law of 1998 to offer at least 10 percent of its equity to the local stock market. However, the listing plans had to be deferred a number of times, with the firm citing unfavorable market conditions and the need for refinery upgrades. — TheVader.com

Like it? Share with your friends!

93 shares, 93 points

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
The Classic Internet Listicles
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Upload your own images to make custom memes
Youtube, Vimeo or Vine Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format