PSE OKs Phoenix Petroleum’s new P7B share offering

The Philippine Stock Exchange has approved a plan by Davao businessman Dennis Uy-led Phoenix Petroleum Philippines Inc. to raise as much as P7 billion from a public offering of a new series of perpetual preferred shares.

Based on the preliminary term sheet posted by the PSE, the follow-on offering will consist of 5 million primary preferred shares at an offer price of P1,000 per share. In the case of strong demand, the company can upsize the offering by 2 million preferred shares more.

The offering – the fourth series in Phoenix’ preferred shares offer— will run from Oct. 21 to 29 while listing on the local stock exchange will be on Nov 7 this year. These securities are cumulative, non-voting, non-participating, non-convertible and redeemable peso-denominated perpetual preferred shares.

China Bank Capital Corp. was mandated as the sole issue manager, joint lead underwriter and sole book runner. Another joint lead underwriter is PNB Capital and Investment Corp.

Phoenix will use net proceeds from the offering to partially finance its capital expenditures and for other general corporate purposes.

While the upcoming preferred shares have perpetual tenor, or maturity period, they will be priced based on benchmark three-year bonds and will have a synthetic maturity of three years. If not redeemed by then, Phoenix will have to pay a higher interest rate./TSB