Pilipinas Shell targets 29.7b pesos from Nov listing

MANILA: Pilipinas Shell Petroleum Corp has filed for an initial public offering (IPO) of shares that may raise as much as 29.7 billion pesos (RM2.57 billion) in one of the country’s largest stock market listings.

The unit of Royal Dutch Shell Plc plans to launch the IPO in October involving up to 330 million primary and secondary shares at up to 90 pesos per share, with a listing on the Philippine Stock Exchange tentatively set for November 10.

If approved by regulators, it could be the country’s third IPO this year and bigger than the US$532 million (RM2.17 billion) maiden share sale by Cemex Holdings Philippines Inc, the largest listing in three years.

The offer size would represent an 18.6 per cent share of Pilipinas Shell after the IPO, a regulatory filing showed yesterday.

The Pilipinas Shell IPO comes as the local bourse is showing signs of stability after months of volatility that prompted companies such as Datem Inc and D.M. Wenceslao & Associates Inc to defer their listings.

Manila’s benchmark stock index soared to a 15-month high last week, with investor confidence getting a boost from expectations that the economy will continue to outperform some of its Asian neighbours.

“The Philippines is an outlier because economic prospects for our country remains favourable,” said Noel Reyes, chief investment officer of Security Bank Corp.