Phoenix Petroleum selling up to P5 billion preferred shares

MANILA, Philippines — Listed independent oil player Phoenix Petroleum Philippines Inc. is eyeing to raise up to P5 billion from its planned preferred share sale to bankroll its expansion plans.

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix said its board approved the issuance of up to P5 billion worth of perpetual preferred shares.

“The proceeds from the planned fundraising will be used to fund the company’s expansion requirements,” the company said.

The oil company is looking to issue the preferred shares in the second quarter of next year, Phoenix Petroleum assistant vice president for external affairs Raymond Zorrilla said in a text message.

“Second quarter 2019 probably as there is no definite time as of this moment,” he said.

The firm also told the exchange that the shares will be registered with the Securities and Exchange Commission (SEC) and listed with the Philippine Stock Exchange (PSE).

Phoenix Petroleum will also tap BPI Capital Corp. and RCBC Capital as joint issue managers, joint underwriters and joint bookrunners, as approved by its board.

Meanwhile, Phoenix Petroleum’s board also approved the redemption of the preferred shares issued on Dec. 20, 2013.

The said shares, composed of five million shares at P100 apiece, was the second tranche of the capital raising activity started in 2010.

Earlier this year, Phoenix Petroleum said it is issuing P10 billion worth of short-term commercial papers (STCPs), of which up to P7 billion was set for this year.

The company has been on an investment and buying spree in the past couple of years.

At the start of the year, it entered into a joint venture agreement with TIPCO Asphalt Public Company Limited (TIPCO Asphalt) and Carlito Castrillo to set-up PhilAsphalt (Dev’t) Corp., which operate, market and distribute  bitumen and bitumen-related products in the Philippines.

Last May, it invested in Pos!ble.net, a digital payment platform to support its business operations aside from synergies on its retail network development for its various fuel products, as well as its subsidiaries and affiliates such as the business operations of Philippine FamilyMart.

In June, Phoenix Petroleum partnered with CNOOC Gas and Power Group Co. Ltd., a unit of state-run China National Offshore Oil Co. (CNOOC),  to study, plan, and develop an integrated liquefied natural gas (LNG)  project in the country.