PNOC unit’s IPO plan still hangs

PNOC Exploration Corp.’s plan to do a secondary offering in compliance with the rules of the Philippine Stock Exchange still hangs as the Cabinet has yet to decide on the matter.

Energy Secretary Jose Rene D. Almendras said a decision on whether PNOC-EC would be allowed by the government to conduct such an offering within the year had yet to be made.

PNOC-EC has until November to hold a public float of at least 10 percent of its shares. At present, the government, through Philippine National Oil Co., holds the bulk of the shares of PNOC-EC, with 99.71 percent, while the public owns only 0.29 percent.

“It will (have to) be discussed at the privatization council,” Almendras said.

PNOC-EC wanted to push through with the said offering. It had even narrowed down to three groups its choice of financial advisers for this transaction. These were the group of Citigroup Global Markets, Citicorp Capital Philippines Inc. and ATR KimEng Capital Partners Inc.; UBS Investments Philippines Inc.; and Deutsche Bank.

Almendras earlier said the suspension was aimed at enabling the government to determine the true value of PNOC-EC shares.