THE Securities and Exchange Commission (SEC) has approved the application of Italpinas Development Corp. for an initial public offering (IPO) and of Phoenix Petroleum Philippines Inc. to sell shares.
In two separate filings approved late Thursday, the SEC gave Italpinas the green light to proceed with a P242-million IPO and Phoenix Petroleum to sell P2 billion worth of shares.
Italpinas is the sixth IPO approved by the PSE this year, after Crown Asia Chemicals Corp., SBS Philippines Corp., Gweilo Corp., Metro Retail Stores Group Inc., and Datem Inc.
Phoenix Petroleum plans to sell shares within the fourth quarter of the year on top of floating P3-billion worth of short-term commercial papers (STCPs).
Primavera Residences developer Italpinas is one of the hopeful debutantes on the stock market this year, seeking to raise P242 million for its planned capital expenditures.
The IPO involves 57.662 million common shares, priced up to P4.20 per share. After the IPO, the public will own 26 percent of Italpinas.
Expected net proceeds of P220.8 million after taxes and fees will go to capex (P120.68 million), land banking and acquisition (P47 million), retirement of loans (P20 million), and general working capital (P33.12 million).
The offer period starts on November 3 and ends on November 9. The company expects to list on the PSE’s Small, Medium and Emerging (SME) Board on November 16. Sole underwriter for the IPO is Unicapital Inc.
Italpinas will be focusing on expansion through the construction of its Primavera City next year and the acquisition of land in Batangas, Negros Oriental, and Iloilo City for planned property projects.
Phoenix Petroleum is expecting to raise P2 billion through the issue of 20 million preferred shares, priced at P100 each.
Net proceeds after listing-related taxes and fees are expected to reach P1.953 billion, which the company intends to use for capex and other working capital requirements.
The company needs to fund the construction of 61 retail stations this year and 80 retail stations next year.
As of end-June, Phoenix Petroleum registered 443 service stations nationwide—158 in Luzon, 62 in Visayas and 223 in Mindanao.
The firm will also allot funds for storage facilities in Cebu and General Santos, as well as the purchase and import of petroleum products.
Phoenix Petroleum appointed PentaCapital, Multinational Investment Bancorporation, and AB Capital and Investment Corp. as lead underwriters for its share sale.