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MANILA, Philippines — The country’s largest oil refiner and distributor Petron Corp. has raised $120 million from the capital market to complete its Bataan oil refinery upgrade program.
The funds were raised from the sale of shares through a private placement priced at P11.50 per share or at a discount to Wednesday’s closing price of P13.40 per share.
When asked what the $120 million fund-raising was for, SMC president and Petron chair Ramon Ang said in a text message early Thursday that the proceeds would be for Petron’s “plant expansion,” citing the refinery upgrading program.
Other industry sources said the deal was upsized from a base offer of $100 million.
In 2011, Petron unveiled a plan to spend $1.8 billion to upgrade its 180,000-barrel-a-day oil refinery in Bataan. The program seeks to ensure stable supply for the country, thereby reducing external vulnerabilities.
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