PILIPINAS Shell Petroleum Corp. is pursuing its plan for an initial public offering (IPO) in the middle of 2016.
Shell country manager Edgar Chua said they are now preparing to debut on the Philippine Stock Exchange, which has been delayed because of low oil prices, regulatory issues and unfavorable market condition.
“We’re preparing for an IPO and the timing could be sometime by middle of next year,” Chua told reporters.
The company is now studying the timing, whether to go public before or after the 2016 national polls.
“It depends if it is before or after elections. Most likely it would be after the elections,” Chua noted.
Chua said there were unfavorable conditions that delayed the IPO.
“How can I offer a good IPO if, like last year, we incurred losses. The stock market was good last year but today it is not doing so well. Those are the factors that we considered,” he said.
The Department of Energy (DOE) has confirmed that Shell already informed the government of its planned IPO once the upgrade of its Batangas refinery is finished.
Shell said the refinery is scheduled for completion in the first quarter of 2016.
The Energy Department has been urging Pilipinas Shell, the local unit of Royal Dutch Shell Plc, to go for an IPO since it has the mandate to sell shares under the Oil Industry Deregulation Act of 1998.
Under the law, an oil company must list in the local bourse at least 10 percent of its shares and within three years from when the law took effect.