Fuel retailer Phoenix Petroleum raises US$28.9 million
Phoenix Petroleum Philippines, Inc. has raised US$28.9 million from a stock share sale and will use the proceeds to repay debt, the company said in a statement on March 12.
The amount was raised after Phoenix Petroleum Holdings, Inc. (PPHI), former majority shareholder of the fuel retailer, sold 130 million common shares for US$0.23 apiece.
In a statement, Phoenix Petroleum said, “demand was very comfortably covered at this price level,” citing “good participation” by “more than 30 accounts,” including hedge funds.
“The said share sale is an offering of an existing shareholder of its shares in Phoenix to investors,” Raymond T. Zorrilla, Phoenix Petroleum assistant vice-president for external affairs, said in a text message.
“The proceeds will be used… to pay subscribed but unpaid shares.”
Following the share sale, Zorrilla said PPHI’s stake in Phoenix Petroleum, “will decrease to 41% from the original 53%.”
Phoenix Petroleum is in the business of trading refined petroleum products and lubricants; operation of oil depots and storage facilities; and shipping, logistics and allied services.
The Davao City-based company in January 2013 reported that its consolidated net income grew by 16% to US$15.5 million last year, from US$13.4 million in 2011 on the back of higher sales.
(March 13, 2013)