Pilipinas Shell seeks $400m IPO

IPO of Pilipinas Shell


Pilipinas Shell Petroleum Corp, a unit of energy titan Royal Dutch Shell PLC, is aiming to raise $400 million in its initial public offering (IPO) debut in the Philippine Stock Exchange. 

The development showed investors are still willing to risk despite the recent slump in the local stock exchange believed to have been affected by political concerns, The Wall Street Journal reported. 

Pilipinas Shell has started taking orders for over $400 million IPO in the local bourse. While the book-building process is seen to last for a week, the goal is to list on the PSE on November 3, 2016. 

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 company’s IPO plans have been described as long overdue as it was supposed to be initially completed 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.

The Philippines’ foreign exhange recored its lowest in seven years since September 2009 when it closed at P48.335 to $1. 

Many people attributed the Philippine Peso’s weakening due to “undiplomatic” statements President Rodrigo Duterte gave against the country’s long time allies such as the US, United Nations, and the European Union. He refused to accept their unsolicited advice that launching war against drug users and pushers is not the solution in solving the drug problem.

Reports said Pilipinas Shell targets to achieve share prices from P64 to P70 ($11.32 to $1.45). The foreign firm itends to use IPO proceeds to back up its capital needs and repay debts.

JP Morgan Chase & Co, and listed domestic bank BPI Capital Corp are serving as Pilipinas Shell’s IPO advisers. 

Only last July, Cemex Holdings Philippines Inc (CHP), a subsidiary of Mexico-based cement maker Cemex, concluded its IPO in the Philippines raising up to P25 billion, while Golden Haven Memorial Park Inc owned by former Senator Manny Villar raised about P778 million when it went public last June. deal street Asia



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