OceanaGold (Philippines) Inc. (OGPI) set the final offer price for its planned initial public offering at P13.33 per share, lower by 22.8 percent from the P17.28 it set earlier.
BDO Capital and Investments Corp., one of the lead global coordinators and lead domestic underwriter for OGPI’s maiden offering, said the order book was fully subscribed at this price on strong support from foreign and local investors.
BDO Capital president Eduardo Francisco said the final offer price offers steep discount considering that OGPI has existing commercial operations and gold prices remained above the $2,325.80-per-ounce level.
He said this price level would give investors an upside in terms of higher dividend yield versus what the real estate investment trust firms were promising.
OGPI will sell up to 456 million secondary common shares, owned by selling shareholder OceanaGold (Philippines) Holdings Inc., The offer shares represent 20 percent of its outstanding capital stock.
Net proceeds from the offer will go directly to the selling shareholder. The company will not receive any proceeds from the offer.
The shares will be listed and traded on the main board of the Philippine Stock Exchange (PSE) under the symbol OGP.
It will be the first company to list on the local bourse this year.
Offer period will run from April 29 to May 6, with listing on the PSE is scheduled on May 13, according to the latest timetable submitted by the company.
OGPI is one of the leading producers of gold and copper in the Philippines and is a subsidiary of Toronto-based OceanaGold Corp.
Its mining operations at the Didipio Mine, in the provinces of Nueva Vizcaya and Quirino, consist of sourcing ore from the underground mine and from its surface ore stockpile. The ore is processed through the company’s processing plant, producing both gold ore and copper concentrate.
The company expects to produce 120,000 to 135,000 ounces of gold and 12,000 to 14,000 ounces of copper this year and all in sustaining cost of $750 to $850 per ounce.
Exploration expenditure at Didipio in 2024 will focus on extension and conversion drilling in the underground as well as planned regional exploration activities.
The IPO complies to the terms of the renewed Financial or Technical Assistance Agreement (FTAA) where the company is required to list its common shares.