Corporate News

Shell says PHL unit gearing for IPO

Posted on June 17, 2016

OIL MAJOR Royal Dutch Shell said on Wednesday its subsidiary in the Philippines, Pilipinas Shell Petroleum Corporation (PSPC), is in the process of preparing an initial public offering (IPO) of its shares.

PSPC has hired BPI Capital Corp. and JP Morgan for the process, IFR, a Thomson Reuters publication, reported earlier this month.

Energy Secretary Zenaida Y. Monsada earlier this week said Edgar O. Chua, chairman of Shell companies in the Philippines, informed her of the decision of Royal Dutch Shell’s board to give the go-signal for the public listing.

The timetable will depend on how fast Pilipinas Shell Petroleum Corp. can secure regulatory approvals for its IPO, she said.

However, Ms. Monsada said the Shell’s IPO would “definitely” happen this year.

Pilipinas Shell is required to sell at least 10% of its common stocks through a public offering three years after Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 became effective.

Pilipinas Shell has postponed its public listing several times because of various factors such as unfavorable market conditions and the company’s weak financial results. -- with Reuters