Phoenix Petroleum plans P2-B share sale

MANILA, Philippines - Independent oil player Phoenix Petroleum Philippines Inc. plans to raise P2 billion through the issuance of perpetual preferred shares to institutional investors.

In its disclosure to the Philippine Stock Exchange yesterday, Phoenix Petroleum said its board approved the issuance of up to P20 million perpetual preferred shares priced at P100 per share.

“It’s to finance capital expenditures and as added working capital,” Phoenix Petroleum assistant vice president for external affairs Raymond Zorilla said in a text message to reporters.

The firm told the exchange the capital-raising activity will be issued by way of public offering subject to registration with the Securities and Exchange Commission (SEC) and listing with the PSE.

This will be the third tranche of its share sale since 2010, when it issued five million non-voting shares through a private placement at P100 each. In 2013, the oil firm issued another five million shares at P100 apiece.

In the same disclosure, Phoenix Petroleum said it registered its existing short term commercial papers (STCP) worth P3.5 million, comprising the P2 million STCPs issued on Oct. 13, 2014 and the P1.5 million STCPs issued on Feb. 23, 2015.