• OFFER PRICE SEEN AT P90 PER SHARE

    Shell seeks SEC nod on P29.7B IPO

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    PILIPINAS Shell Petroleum Corp. (PSPC) has applied for approval from the Securities and Exchange Commission’s (SEC) for its proposed P29.7-billion initial public offering.

    Documents submitted to the SEC showed that the petroleum company would float up to 300 million primary and secondary shares, with an overallotment option for another 30 million shares.

    The shares will be offered at P90 apiece, representing 18.6 percent of PSPC’s outstanding capital stock.

    The offer period for the proposed IPO is scheduled from October 26 to November 3 of this year and the listing date will take place about a week after the last offer date.

    J.P. Morgan was tapped as the IPO’s global and international book runner, while BPI Capital Corp. was chosen as the domestic lead underwriter and domestic book runner.

    A unit of Royal Dutch Shell Plc., PSPC said that of the 300 million shares, some 270 million would be secondary shares, which are being held and will be offered by its selling shareholders.

    Thus, only 30 million to be sold will be in the form of primary shares.

    The selling shareholders — Shell Overseas Investments B.V., The Insular Life Assurance Co. Ltd. and Spathodea Campanulata Inc. — would get the bulk of the IPO proceeds in the amount of P26.48 billion.

    The IPO would leave the oil firm with just P2.7 billion in net proceeds, which it intends to utilize to fund capital expenditures, working capital and general corporate purposes.

    Pursuant to the Oil Deregulation Act of 1998, Pilipinas Shell, which operates one of the two refineries in the country, is required to offer at least 10 percent of its equity to the public.

    Pilipinas Shell will be the third company this year to conduct an IPO, after Manuel Villar’s Golden Haven Memorial Parks Inc. and cement maker Cemex Holdings Philippines Inc.

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