In anticipation of Frontier Oil Corp.’s (FOC) upcoming P2.2-billion initial public offering (IPO) early next year, the unit of Trans-Asia Oil and Energy Development Corp. (TA) has confirmed its intention to subscribe to as much as P136-million worth of shares in the future listed firm.
In a filing with the Philippine Stock Exchange (PSE), TA disclosed that its wholly owned unit, Trans-Asia Petroleum Corp., has agreed to subscribe to P136 million in FOC shares, through the latter’s forthcoming IPO slated for early 2014.
“We have always worked closely and constructively with the management of Trans-Asia and look forward to jointly advancing our mutual oil and gas interests and in further developing new opportunities within the industry for the benefit of both investors and the Philippine energy marketplace,” said Kris Fellowes, Frontier Oil Corp. chief executive officer.
According to Fellows, the anticipated entry of TA into FOC signifies a strong indication of TA’s support and belief in its oil and gas initiatives, including its offshore and onshore projects located across the Philippines’ three most prospective hydrocarbon basins.
However, TA said the transaction is still subject to certain terms and conditions. On November 26, FOC decided to postpone its P2.2-billion maiden share sale in the PSE and move it to early 2014 due to the market jitters brought by Super Typhoon Yolanda.
“In consultation with the company’s underwriters and several significant investors, FOC believes it in the best interests of both the company and its shareholders to defer its listing until early next year,” Fellowes said in the firm’s previous disclosure to the local bourse.
The company’s IPO was originally scheduled from November 25 to 29, while the official listing date of its shares at the PSE would have been on December 9, all this year.
To raise P2.2 billion, the company is planning to sell up to 883.63 million common shares at a maximum price of P2.50 apiece.