A week after it secured the approval of the Securities and Exchange Commission (SEC), oil and gas firm Frontier Oil Corp. has secured the go-signal from the local bourse to proceed with its maiden share sale this November.
In a memorandum, the Philippine Stock Exchange (PSE) said that its board approved Frontier Oil’s initial public offering (IPO) worth P2.2 billion.
To raise P2.2 billion, the company is planning to sell up to 883.63 million common shares at a maximum price of P2.50 apiece.
The shares shall be listed and traded on the Main Board of the PSE.
Start of domestic roadshow and bookbuilding for the Frontier Oil’s IPO is on November 4 to 15, while the start of the offer period is on November 25. The shares of the company are set to be officially listed at the stock exchange on November 9.
The company said that it will use the proceeds from the primary offer for further exploration of Service Contract 50 in Northwest Palawan, Service Contract 52 in Cagayan Valley, working capital and general corporate expenses, and IPO-related costs.
After the IPO, the company will have a market capitalization of up to P6.7 billion with an estimated public float level of 32.95 percent.
Last week, Frontier Oil bagged regulatory approval to proceed with its planned stock market debut originally set in December.
“Delighted to confirm preeffective status by SEC. [The approval] sets scene for final approval by PSE next week in anticipation of early-December IPO,” Frontier Oil said earlier.