Shell's Philippines Unit Prices Up To $404Million IPO At High End Of Range

Shell's Philippines Unit Prices Up To $404Million IPO At High End Of Range
The Philippine unit of Royal Dutch Shell plc is set to raise up to $404 million after pricing its IPO at the top end of its range.


MANILA, Oct 14 (Reuters) - The Philippine unit of Royal Dutch Shell PLC is set to raise up to $404 million after pricing its IPO at the top end of its range, in what would be the fifth-biggest listing in Southeast Asia this year, its underwriter said on Friday.

Pilipinas Shell Petroleum Corp will sell up to 291 million shares at 67 pesos ($1.39) each, said Reginaldo Anthony Cariaso, chief operating officer of BPI Capital Corp, one of the deal's underwriters.

The company's guidance was 65-67 pesos per share while the marketing range was at 64-70 pesos each.

The initial public offering follows weeks of ups and downs in the stock market, driven by concerns over the prospect of a U.S interest rate hike in December and a festering row between President Rodrigo Duterte and traditional ally the United States over alleged extrajudicial killings in his war on drugs.

The broader stock market index closed at a five-month low on Thursday because of foreign outflows.

"The market volatility is something we think about but it did not affect overall demand," Cariaso told Reuters.

The offer period will run from Oct. 19 to 25 while the listing is scheduled for Nov. 3.

One of the world's fastest-growing economies, the Philippines' IPO market has been buoyant in the second half. Two companies have listed so far this year, including the $536 million IPO of Cemex Holdings Philippines Inc.

"Given that it is a bit oversubscribed, there is optimism for the stock," Rafael Palma Gil, portfolio manager at Rizal Commercial Banking Corp in Manila, told Reuters.

But market sentiment could be buffeted by headwinds like a U.S. rate hike and political difficulties arising from the new president's hostility toward the West, he added.

Pilipinas Shell is required under a two-decade-old law to offer at least 10 percent of equity to the public. But listing plans have been deferred several times due to factors such as unfavourable market conditions and refinery upgrades.

(Reporting by Neil Jerome Morales; Additional Reporting by Elaine Tan; Editing by Vyas Mohan and Stephen Coates)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
SXL - Senior Counsel, Corporate Finance & Securities
Expertise: Accounting
Location: Newtown Square, PA
Operations Supervisor - Hobbs, NM Job
Expertise: Asset Management|Operations Management|Refinery / Plant Operations Supervisor
Location: Hobbs, NM
Lead Security Analyst, Compliance Job
Expertise: Accounting|IT - Analysis & Management|Security
Location: Minneapolis, MN
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours