LISTED firm Phoenix Petroleum Philippines Inc. is proceeding with its follow-on share sale to raise P2 billion in additional funds for its aggressive capital spending program.
In a final prospectus filed with the Philippine Stock Exchange (PSE), Phoenix Petroleum said its P2 billion follow-on offer is currently running from December 7 to 11. The shares are expected to be listed on the exchange by December 18.
The offer consists of 20 million preferred shares — 10 million base offer and 10 million in case of oversubscription — priced at P100 each.
Penta Capital and Investment Corp. is the sole issue manager and one of the lead underwriters and is joined by Multinational Investment Bancorporation and AB Capital and Investment Corp.
The company has been accumulating additional funds for its expansion programs, as it just raised P3.5 billion from an issue of short-term commercial papers (STCP) this year
Phoenix Petroleum said half of the net proceeds from the offer will be used for the completion of 61 additional retail stations in key cities in North and South Luzon, the Visayas and Mindanao (40 percent) and storage facilities in Cebu and General Santos City (60 percent).
The other half will be used for 80 new retail stations in various areas in the same regions (60 percent) and the balance will go to the purchase and importation of petroleum products (40 percent).
The filing noted that Phoenix Petroleum is working on strengthening oil supply security, developing the Phoenix brand, and expansion of the following: petroleum depot, terminalling and distribution facilities; retail service network; wholesale and trading operations to Luzon and Visayas from the existing Mindanao operations; as well as retail management systems and operations.
Incorporated in May 2002 and formerly known as Oilink Mindanao Distribution Inc., Phoenix is engaged in trading refined petroleum products, lubricants and other chemical products on a wholesale basis, operation of oil depots and storage facilities, and allied services mainly in Southern Philippines. Its products and services are distributed and marketed under the Phoenix Fuels Life trademark.