SEC approves P29.7-B Pilipinas Shell IPO

0

THE Securities and Exchange Commission (SEC) has given the green light to the initial public offering (IPO) of Pilipinas Shell Petroleum Corp., the second largest oil refiner in the Philippines.

Ephyro Luis Amatong, SEC commissioner, told reporters late Tuesday that the commission approved the P29.7-billion IPO on the same day after amendments and weeks of deliberation.

“Approved, as amended,” Amatong said, adding, “The P29.7 billion IPO together with Cemex is P60 billion raised in the capital markets.”

“With the approval today by the commission, I think it’s still for completion by November,” the commissioner said.
Amatong said the amendment made was only on the part of how much local small investors (LSI) can purchase. As amended, the IPO will allow LSIs to purchase more than the usually allotted 20,000 shares per investor but not exceeding 100,000 shares.


With the SEC approval in hand, Shell will now only require the go signal of the Philippine Stock Exchange to be able to proceed with its maiden public offering and listing on the exchange.

The Shell offering will be the third IPO this year following the successful market debuts of Cemex Holdings Philippines Inc. (P25 billion) and Golden Haven Memorial Park Inc. (P787 million).

Shell, the local unit of Royal Dutch Shell Plc., plans to raise up to P29.7 billion in fresh funds from an offering of up to 300 million primary and secondary shares, and another 30 million shares in case of oversubtscription. These shares would equate to an 18.6 percent public float for the company.

The IPO shares are expected to be priced at up to P90 each, and will be offered to the public from October 26 to November 3. The shares will then be listed on the PSE on November 10.

Of the 300 million offer shares, 270 million will be secondary shares being sold by selling shareholders Shell Overseas Investments B.V., The Insular Life Co. Ltd. and Spathodea Campanulata Inc. Only 30 million are primary shares.

This would mean that selling shareholders will receive P26.48 billion in net proceeds from the IPO, while Shell will get P2.7 billion, which will be used to fund capital expenditures, working capital, other working capital and general corporate expenses.

J.P. Morgan was appointed the global and international bookrunner of the offer, while BPI Capital Corp. serves as the domestic lead underwriter and domestic bookrunner, and Rothschild was tapped as the financial adviser.

The Shell IPO is compliant with the Oil Deregulation Law of 1998, which requires oil refiners to list at least 10 percent of their shares in the local stock market. The IPO is already more than 10 years delayed due to unfavorable market conditions, low oil prices and regulatory issues.

Pilipinas Shell has the second largest oil refiner in the country next to Petron Corp. in terms of volume sold, having cornered 29 percent of the local retail fuel market.

As of end-June, the company operates 996 retail service stations nationwide.

Shell owns an oil refinery in Batangas—one of two refineries in the country—which produces 110,000 barrels of fuel per day. The facility has recently undergone an upgrade to deliver Euro 4 compliant fuels.

Share.
.
Loading...

Please follow our commenting guidelines.

Comments are closed.