The board of Phoenix Petroleum Corp. approved the appointment of China Bank Capital Corp., and any additional partners later, to underwrite the sale of the company’s perpetual preferred shares amounting to P5 billion.
The shares will be registered with the Securities and Exchange Commission and listed with the Philippine Stock Exchange.
“Proceeds from the fundraising will be used to fund the company’s expansion requirements,” Phoenix said in a disclosure Monday.
The board also approved the transfer of Phoenix’s allocated capital expenditure budget of P2 billion to wholly-owned subsidiary PFL Petroleum Management Inc. and “thereby increase its investments of same amount to PPMI for the purpose of retail expansion.”
Phoenix has been on an aggressive expansion mode in the past years, venturing into liquefied petroleum gas, bitumen, convenience store retailing business and liquefied natural gas.