The Pilipinas Shell Petroleum Corporation (PSPC), a subsidiary of Royal Dutch Shell, has set its final offer price at P67 pesos per share, becoming the Philippines’ second biggest initial public offering (IPO) this year.
“Pilipinas Shell prices at P67 per share the top end of the price guidance of P65-P67 price guidance,” Bank of the Philippine Island (BPI) Capital chief operating officer Reginaldo Anthony Cariaso said.
With a base public offering of 275 million shares in the Philippines Stocks Exchange (PSE) and another 16 million shares to cover the overallotment, the Pilipinas Shell will raise as much as P19.5 billion in proceeds from its IPO.
The offer shares consist of 247.5 million secondary shares will be sold by selling shareholders and 27.5 million primary shares.
the oil refiner said it will not get proceeds from the sale of secondary shares. With that being said, the Pilipinas Shell will only receive P1.84 billion in proceeds from the sale of its primary shares, which will be used to expand its retail network across the archipelago.
Based on Pilipinas Shell’s initial filing with the Securities and Exchange Commission (SEC), the oil firm planned to raise as much as P29.7 billion in the proceeds from the sale of as much as 330 million shares at P90 per share.
However, Pilipinas Shell reduced not only its offer price, but the offer shares as well.
The offer price was lowered because Royal Dutch Shell PLC, which is the parent company of Pilipinas Shell Petroleum COrporation, did not want its ownership in the oil refiner to drop below 55 percent.
With the new offer price, BPI Capital said that Royal Dutch will keep in ownership in Pilipinas Shell above the 55 percent.
The offer period starts on October 19 until October 25, while listing date to PSE has been scheduled on November 3rd.
Pilipinas Shell is one of the two refining and marketing oil firms in the country with an estimated domestic refined petroleum products market share of 24 percent.
The oil refiner operates a 110 barrel-per-day refinery in Batangas, which recently underwent an upgrade to accommodate Euro 4-compliant fuels.
The PSPC will be the third oil refiner to be listed with the PSE this year. The first two were Golden Haven Memorial Park Incorporated and Cemex Holdings Philippines Incorporated. — TheVader.com