OceanaGold PH shares drop on market debut

THE country’s first public listing for the year — also the first by a mining company in over a decade — got off to a rocky start on Monday.

OceanaGold Philippines Inc. (OGP) saw its shares open slightly higher than the discounted initial public offering (IPO) price of P13.33 at P13.34, but then closed the day 6.16 percent down at P12.50.

The benchmark Philippine Stock Exchange index (PSEi), which has struggled in recent weeks after nearly returning to the 7,000 level last month, started the week 1.14 percent higher at 6,604.25.

OGP, owned by Toronto-listed OceanaGold Gorp. and the operator of the Didipio gold-copper mine in Northern Luzon, was required to conduct the IPO under the terms of its mining permit.

It still successfully raised P6.08 billion via the public offer of 456 million shares from April 29 to May 6.

OGP originally targeted an IPO price of P17.28 and gains of P7.6 billion. Analysts said the 23-percent discount from the maximum offer was likely prompted by “challenging” market conditions.

Its parent firm has said that the proceeds from the IPO would be used for the “repayment of the company’s debt,” which was $135 million at the end of 2023.

During Monday’s bell-ringing ceremony, OGP President Joan Adaci-Cattiling said the listing was “truly a momentous occasion, a milestone not only for us but for the Philippine mining industry and business sector in general.”

PSE President and CEO Ramon Monzon, meanwhile, said, “OGP’s listing comes at a time when prospects for the mining industry are favorable.”

“The government is looking to revitalize the mining industry to boost its potential contribution to the economy. The local mining sector certainly has a vast potential that can fuel economic growth,” he added.

BDO Capital and Investment Corp. was tapped as the IPO’s global coordinator, domestic underwriter and bookrunner, while CLSA Ltd. acted as the international underwriter.

OGP holds the country’s first FTAA, or financial or technical assistance agreement, which was executed in 1994 and extended for an additional 25 years beginning in June 2019.

The mining firm’s first-quarter financial and operating results are expected to be disclosed at the end of the month, while its first postlisting dividend payment to shareholders will be declared in July.