Pilipinas Shell Petroleum Corp. has priced its initial public offering at PHP67 (USD1.39) per share, for a total of PHP 19.5 billion (USD403.56 million) in fresh funds, according to its lead domestic underwriter, BPI Capital Corp.
"The price was based on bookbuilding with a strongly covered book and being able to allocate vast majority to domestic and international long-only funds," said Reginaldo Cariaso, senior managing director at BPI Capital Corp.
Pilipinas Shell finalised its offering of 275 million primary and secondary shares as base offer and 16 million secondary shares to cover an oversubscription.
The offer period runs from Oct. 19 to 25, 2016. The shares will be listed on the Philippine Stock Exchange’s (PSE) Main Board on Nov. 3.
J.P. Morgan was appointed as global and international bookrunner, while Rothschild was tapped as financial adviser for the IPO.
Pilipinas Shell operates one of two oil refineries in the Philippines, with a crude oil refining capacity of 110,000 barrels per day. As of the end of June, the company operated 996 fuel retail outlets nationwide, with a 29% market share.