Shell IPO may be biggest yet

The Philippine Stock Exchange has approved a plan by the local unit of Royal Dutch Shell to sell as much as P29.7 billion worth of shares in what could be a landmark initial public offering (IPO) in October.

The Pilipinas Shell Petroleum Corp. IPO will run from Oct. 19 to 25 after the price setting on Oct. 13, based on an offering memorandum issued by the PSE on Thursday.

Pilipinas Shell, which is executing a much-awaited stock market debut mandated by the downstream oil industry deregulation law of 1998, seeks to offer up to 330 million primary and secondary shares to the public for as much as P90 per share.

The listing on the PSE’s main board under the ticker “SHLPH” is scheduled on Nov. 3.

If the company is able to issue the maximum amount of shares at the maximum price, it will be the biggest stock market debut seen in the history of the Philippine Stock Exchange.

The three largest IPOs so far in this market were completed by the following issuers: retailer Robinsons Retail Holdings Inc. (P28.11 billion in 2013); the Sy family-led conglomerate SM Investments Corp. (P26.25 billion in 2005); and Cemex Holdings Philippines Inc. (P25.1B in 2016).

Of the total offering, Pilipinas Shell plans to offer up to 270 million secondary shares and 30 million in primary shares while 30 million shares are set as over-allotment.

This stock debut will bring 18.6 percent of the company’s post-IPO shares to public hands.  At the maximum IPO price, the company will have a market capitalization of P151.52 billion.