Phoenix Petroleum Philippines Inc. is issuing P2 billion worth of preferred shares to raise funds for its expenses and operational needs.
Phoenix yesterday said its board had approved the subscription of 2 million preferred shares by private placement, at P1,000 apiece.
“The proceeds shall be used to finance capital expenditure and working capital requirements,” the company said. RCBC Capital Corp. is the issue manager and underwriter for the offering.
Last month, Phoenix’s board gave the green light for the issuance of up to P5 billion of perpetual preferred shares to support its plans for business expansion.
Phoenix is engaged in the nationwide trading and marketing of refined petroleum products including lubricants and operation of oil depots and storage facilities, hauling and into-plane services.
Phoenix already has 558 stations nationwide and continues to build up its position in the commercial segment mainly in the marine and road transport sectors.
Over the past two years, its portfolio has expanded with liquefied petroleum gas business acquired from Malaysia’s Petronas group, convenience store retailing under the Family Mart brand, and overseas and trading and supply through its Singapore operations.
Further, Phoenix is venturing into the asphalt business with PhilAsphalt Development Corp. and Thailand’s Tipco Asphalt.
Phoenix is also taking steps toward a possible liquefied natural gas (LNG) business in the country with its Chinese partner, CNOOC Gas and Power Group Co. Ltd.