Pilipinas Shell Petroleum Corp. has set the final price for its planned maiden share offering at P67 per share, the underwriter handling the transaction said Thursday.
“Pilipinas Shell prices at P67 per share, the top end of the price guidance ofP65-P67,” BPI Capital chief operating officer Reginaldo Anthony Cariaso said.
With a base offer of 275 million shares plus another 16 million shares to cover over-allotment, Pilipinas Shell is expected to raise as much as P19.5 billion in proceeds from the initial public offering.
The shares consist of 247.5 million in secondary shares to be sold by selling shareholders and 27.5 million in primary shares.
Pilipinas Shell will not receive the proceeds from the sale of secondary shares. This means the oil refiner will get only P1.84 billion in proceeds from the sale of the primary shares, which it plans to use to expand its retail network across the country.
Pilipinas Shell, according to an initial filing with the Securities and Exchange Commission, had planned to raise as much as P29.7 billion in proceeds from sale of a maximum of 330 million shares at P90 apiece.
The oil refiner after the book building process reduced the offering price and the shares as well.
Cariaso said Pilipinas Shell reduced the offering price after parent Royal Dutch Shell Plc. did not want its ownership in the oil refiner to drop below 55 percent.
With the new offering size, Cariaso said Royal Dutch would keep ownership in Pilipinas Shell above the 55 percent level.
The offering period is set from Oct. 19 to 25 while listing date is scheduled on Nov. 3.
Pilipinas Shell is one of the two refining and marketing oil companies in the Philippine with an estimated domestic refined products market share of 24 percent.
It operates a 110,000 barrel-per-day refinery in Batangas, which recently underwent an upgrade to deliver Euro 4-compliant fuels.
Pilipinas Shell as of June 30, 2016 operated a network of 966 Shell Group-branded retail service stations, comprising of 583 retail service stations in Luzon, 160 in Visayas and 223 in Mindanao, offering fuel-based products, lubricants, non-fuel products and services.
Pilipinas Shell will be the third company to be listed with the Philippine Stock Exchange this year. The first two were Golden Haven Memorial Park Inc. and Cemex Holdings Philippines Inc.