Pilipinas Shell may further delay IPO by more than 1 year

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Pilipinas Shell Petroleum Corp., the local unit of Royal Dutch Shell Plc, may further delay its initial public offering (IPO) for more than a year, citing market conditions and refinery update issues.

This came after the company confirmed that its much-delayed IPO may not likely occur this year, because it decided first to complete the study on the update of its refinery in Batangas.

“At this point in time, I would like to say that it looks favorable that we will keep the refinery. Kaya lang for us to say categorically we will do the IPO until we secure na napirmahan ’yung refinery investment decision, mahirap naman ’yun [But for us to say that we will do the IPO until we secured the refinery investment decision is quite hard],” Edgar Chua, country manager of Pilipinas Shell, said.

He explained that the company’s IPO plans will be more effected by timing issues amid market conditions.

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“Sasabihin nung mga tao lagi naman kayong naghahanap ng excuse [People will say we are just making an excuse]. But these are not coming from us, these are developments coming up,” Chua said.

“Now kung sinabi mong may refinery ako, mag-IPO ako, pero ano ba ’yung timing, maganda ba ’yung market? Ibang issue ’yung timing. [Now, I have a refinery and I have to do IPO but how is the timing? Are the market conditions better? Timing is a different issue],” he added.

Pilipinas Shell earlier said that it may consider doing an IPO after completing study on its refinery update but according to Chua, this could go beyond that.

“Hopefully, within the next 12 months ’yung FID [final investment decision on the refinery update]. IPO depende pa rin kasi ’yung next 12 months, pwedeng next month, it can be 12 months. [FID on the refinery update will hopefully be sealed in the next 12 months, but the IPO still depends and it could be more than 12 months],” Chua said.

“All I’m saying is you cannot look at things from a local aspect only,” he added.

Pilipinas Shell spokesman Bobby Canapi earlier told reporters this month that the company is conducting a study on its refinery update, and the plan is to finish this before proceeding with IPO plans.

“We are conducting that study on the refinery following the completion of the standards for Euro 4 in the Philippines,” he said.

This is in response to the Department of Energy’s letter to the company, asking Pilipinas Shell for updates on its public listing plans.

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