Petron Corp., the country’s top oil firm, started a weeklong offering of preferred shares on Monday to raise up to P10 billion. Proceeds from this week’s offering will be used to redeem an earlier series of preferred Petron shares, which raised funds to support Petron’s investment requirements and for general working capital.
Last week, Petron said it had obtained the approval of the Securities and Exchange Commission for the plan to sell the preferred shares at P1,000 a share.
The offering comprises a base offer of P7-billion worth of shares and another P3-billion worth of shares that are available in case of strong demand.
Petron said Monday investors can avail themselves of the offering until Friday.
BDO Capital & Investment Corp., China Banking Corp., RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank were tapped as joint lead managers for the offering.
Net proceeds will be used to redeem an earlier series of preferred shares issued to support Petron’s investment requirements and for general working capital.
The earlier set of preferred shares, offered at P100 per share, are “callable” by March 5 next year or at any dividend payment date afterwards but can be redeemed ahead of time.
Also last week, Petron reported the completion of its $2-billion refinery in Bataan province, which is expected to boost the oil firm’s output. Its gasoline production alone is expected to double to 36,000 barrels per day from the current 18,000 barrels per day.
Company chair and CEO Ramon S. Ang said this would result in increased revenue for Petron and more fuel supply for the domestic market.
The upgrade also Petron’s refinery into one of the most advanced facilities in Asia-Pacific in terms of processing and energy efficiency, operational availability, and complexity.