Pilipinas Shell Petroleum Corp has finally completed its long overdue initial public offering (IPO) raising its least target of $400 million (P19.5 billion) share sale on the Philippine Stock Exchange (PSE).
Although it opened flat in its IPO debut, Pilipinas Shell achieved a market capitalization of over $2.2 billion (P108 billion), likely qualifying it for the 30-member main PSE index (PSEi).
A local unit of energy titan Royal Dutch Shell PLC, Pilipinas Shell was supposed to have gone public in 2002, as per the the Oil Industry Deregulation Act of 1998. The law mandates that Shell should list 10 per cent of its common stocks.
Pilipinas Shell offered 291 million shares priced at P67 apiece, joining the PSE main board on Thursday with the stock symbol “SHLPH”.
The IPO was led by JP Morgan as Global Coordinator and International Bookrunner, and BPI Capital as Domestic Lead Underwriter and Domestic Bookrunner. Rotchschild served as Financial Advisor to the corporation.
The foreign firm itends to use IPO proceeds to back up its capital needs and repay debts.
Pilipinas Shell could have further realized a higher market capitalization but was restrained by a volatile trade brought about by uncertainties stemming from the US presidential elections, reports said.
Pilipinas Shell traces its roots to Asiatic Petroleum Company (Philippine Islands) Ltd in the Philippines back since 1914, and has grown to become one of the leading oil refining and marketing businesses in the Philippines.
The corporation last traded at P70.65 per share.