Shell’s Philippine unit fires starting gun on long-delayed IPO
Pilipinas Shell has finally fired the starting gun on its long-delayed initial public offering (IPO).
The Royal Dutch Shell unit wants to raise as much as $629m, according to a regulatory filing released today. This means it will be one of the country's biggest ever stock market debuts.
Read more: Oil majors to stage sharp rebound after crude's modest revival
The company, which is based in Makati City, will make up to 330m shares available at up to 90 pesos each in October, with a listing on the Philippine Stock Exchange pencilled in for the following month.
This would represent about 18.6 per cent of Pilipinas Shell after the IPO.
The cash would be used to fund capital expenditures, working capital as well as general corporate expenses.
Shell has enlisted BPI Capital and JP Morgan to handle the IPO.
Read more: Shell job losses could be worsened by Brexit vote
The firm is required under a nearly two-decade local law to conduct an IPO. Shell's Philippines country chairman, Edgar Chua, said late last year that the company was "getting ready" for this.
It had previously pushed backed the share sale, citing unfavourable market conditions and the need to upgrade its local refinery.