Shell prices IPO at P67/share

Pilipinas Shell Petroleum Corp. has priced its initial public offering at P67 a share, allowing the country’s second largest oil company to sell as much as P19.5 billion worth of shares to the public.

The local unit of Royal Dutch Shell has finalized its base IPO offer at 275 million shares, which can be raised to 291 million if the overallotment is exercised, said Reginald Cariaso, managing director of BPI Capital, which is the domestic lead underwriter and book-runner for the deal.

“Pilipinas Shell IPO was priced at P67 per share, the top end of the price guidance of P65 to P67 (per share),” Cariaso said in a text message Friday.

JP Morgan is the global coordinator and international bookrunners.

The offer shares will be listed and traded on the main board of the Philippine Stock Exchange under the stock symbol “SHLPH” on Nov. 3.

The offering will run from Oct. 19 to 25.

Pilipinas Shell is one of only two integrated oil refining and marketing companies in the Philippines.

It controls the second largest retail distribution network in the country, with 966 Shell-branded retail service stations across the country.

Apart from fuel-based products, lubricants, non-fuel products and services, these outlets also offer convenience retailing as well as other non-fuel offerings such as in-store dining services through the company’s own food concept, Deli2Go.

Gross sales in 2015 and for the six months ended June 30 2016 were P168.9 billion and P71.7 billion, respectively.

Profits for the year ended 2015 and for the six months ended June 30, 2016 were P3.6 billion and P5.1 billion, respectively.