Shell trims IPO price

MANILA, Philippines - Pilipinas Shell Petroleum Corp. (Shell) has trimmed the targeted gross proceeds for its planned initial public offering of shares, after setting a price range of P64 to P70 each share.

With the new price range, Shell is seen to raise P21.12 billion to P23.1 billion, lower than the earlier indicated proceeds target of P29.7 billion from the sale of up to 330 million shares for a maximum price of P90 per share.

 Shell is set to list on the Philippine Stock Exchange on Nov. 3 under the symbol SHLPH. Its maiden share sale is expected to be one of the biggest IPOs in the PSE’s history.

Other big IPOs are Robinsons Retail which raised P26.79 billion in 2013, SM Investments Corp. (P26.25 billion), and Cemex Holdings Philippines (P25 billion).

Documents from the Securities and Exchange Commission showed the 330 million shares include an over allotment of up to 30 million shares.

Of the 330 million, 270 million will comprise secondary offer shares from selling shareholders, Shell Overseas Investments B.V., The Insular Life Assurance Co. and Spathodea Campanulata Inc.

 Shell has already commenced a series of meetings with investors within and outside the Philippines for the share sale and has received positive feedback and strong interest especially among foreign investors.