PHOENIX Petroleum Philippines Inc. is seeking the green light from the Securities and Exchange Commission (SEC) to sell preferred shares and short-term commercial papers (STCP) with a combined amount of up to P5.5 billion.
In two regulatory filings, Phoenix noted it intends to raise up to P2 billion from 20 million preferred shares priced P100 each and P3.5 billion from STCP.
According to a September 10 prospectus, the company said it has already issued the P3.5 billion worth of STCPs in two tranches: P2 billion in October 2014 P1.5 billion in February 2015.
This is the third STCP the company intends to float. Net proceeds of P3.476 billion will go to “working capital requirements for importation of fuels and lubricants.”
Phoenix has appointed Multinational Investment Bancorportion and AB Capital & Investment Corp. as joint managers, bookrunners, lead underwriters and arranger for the STCP.
For the share sale, Phoenix said in an August 24 prospectus that it will issue 10 million perpetual preferred shares and another 10 million shares in case of oversubscription.
This is also the third issuance of preferred shares for the company following the first and second tranches in September 2010 and December 2013, respectively, totaling P1 billion.
The company said the timeline of the share sale and listing will be determined after it has secured the SEC approval.
Proceeds of the share sale will finance capital expenditures and working capital.
Penta Capital and Investment Corp. is the sole issue manager and one of the lead underwriters together with Multinational Investment and AB Capital.
Phoenix is working on strengthening oil supply security, developing the Phoenix brand, and expanding its operations to Luzon and Visayas from Mindanao, the company noted.
The company is an independent oil player.