Pilipinas Shell gets approval on P29.7 Billion IPO – SEC


Pilipinas Shell Petroleum Corp. and its awaited P29.7 Billion initial public offering now has its go-signal from the Securities and Exchange Commission (SEC).

The SEC approved the biggest market debut at the Philippine Stock Exchange (PSE) IPO in its en banc meeting yesterday, SEC commissioner Ephyro Amatong said.

The company will offer an initial 330 million shares that include an over-allotment of 30 million, for up to P90 per share.

Despite the stock exchange fluctuation, Shell will carry on with its plan to proceed with the IPO.

“They will push through. The market is still at 7,500 level,” Amatong said.

Pilipinas Shell will be listed on November 10, as what they first filed.

Proceeds from the primary offer sales will be around P2.7 billion which will be used to fund capital expenditures and other requirements.

60 percent of the proceeds will be used to expand the company’s existing retail work. While 25 percent will be for the maintenance and upgrade of its Batangas refinery, so that it could produce bitumen, a petroleum distillation residue used for road construction.

The remaining balance will be used in enhancing the supply and distribution networks, and other general working capital requirements.

Pilipinas Shell has JP Morgan and BPI Capital as its underwriters, while Rothschild will be their financial advisor.

Shell has 966 retail service stations nationwide, with a net income of P5.072 billion in the first semester of 2016, 28 percent higher than last year’s P3.962 billion, document shows.