PILIPINAS Shell Petroleum Corp. has priced its maiden share sale at P67 apiece for a total of P19.5 billion in fresh funds, the company’s lead domestic underwriter said on Friday.
“The final price is P67 per share, the top end of the pricing guidance of P65 to P67 per share. This is a premium to comparables,” Reginaldo Cariaso, senior managing director at BPI Capital Corp., said in a text message to The Manila Times.
“The price was based on bookbuilding with a strongly covered book and being able to allocate vast majority to domestic and international long-only funds,” he added.
BPI Capital is the domestic lead underwriter and bookrunner of the oil refiner’s initial public offering (IPO).
Pilipinas Shell finalized is offering 275 million primary and secondary shares as base offer, and 16 million of secondary shares to cover an oversubscription.
The offer period runs from October 19 to October 25, the shares are set to be listed on the PSE’s Main Board on November 3.
J.P. Morgan was appointed as global and international bookrunner, while Rothschild was tapped as financial adviser for the IPO.
The maiden offer is the third IPO for the year after Cemex Holdings Philippines Inc. (P25 billion) and Golden Haven Memorial Park Inc. (P787 million).
The oil refiner’s IPO is compliant with the Oil Deregulation Law of 1998, requiring oil refiners to list at least 10 percent of equity in the stock market.
The Pilipinas Shell IPO was delayed for more than 10 years for various reasons that include unfavorable market conditions, low oil prices, and regulatory issues.
The company operates the second largest oil refinery in the country next to Petron Corp. in terms of volume sold. It holds a 29 percent share of the retail fuel market. As of end-June, the company was operating 996 retail service stations nationwide.
Its oil refinery in Batangas produces 110,000 barrels of fuel per day, including Euro 4 compliant fuels.