PSE approves Shell’s IPO bid

MANILA, Philippines - It’s all systems go for the market debut of Pilipinas Shell Petroleum Corp. after obtaining the approval of the Philippine Stock Exchange (PSE) to proceed with its P29.7 billion initial public offering (IPO).

Shell earlier obtained the green light from the Securities and Exchange Commission to sell shares to the public for the first time.

According to its revised offer term sheet posted on the PSE website yesterday, Shell’s offer period will run from Oct. 19 to 25 while the listing of the shares has been set on Nov. 3.

The offer price will be finalized on Oct. 13.

The company is offering 330 million shares including an over allotment of up to 30 million for a maximum P90 per share.

Proceeds from the sale of primary offer shares, amounting to P2.7 billion, will fund capital expenditures and other requirements.

Selling shareholders, who will sell 270 million secondary shares, will get P26.48 billion in net proceeds.

According to the term sheet, up to 90 million firm shares or 30 percent will be offered to trading participants and retail investors.

Shell’s IPO took 18 years and four administrations — Ramos, Estrada, Arroyo and Aquino – to finally happen.

The Oil Deregulation Act of 1998 mandates oil companies including Shell to list at least 10 percent of their common stock within a period of three years since the effectivity of the law.

Shell plans to use bulk of the proceeds for the expansion of its retail network. It intends to have a total of 1,220 gas stations by 2020.

At present, Shell has a widespread network of 966 retail service stations, of which 583 are in Luzon, 160 in the Visayas and 223 in Mindanao. 

Shell has tapped JP Morgan and BPI Capital as underwriters. It also tapped Rothschild as financial advisor.