Didipio mine operator sets P7.9-B IPO plan for May 2024

OceanaGold Philippines aims to make its stock market debut in May this year as it moves closer to launching its planned P7.9-billion initial public offering (IPO). In a revised prospectus last week, the company revealed plans to list its shares on the main board of the Philippine Stock Exchange on May 7 under the stock code “OGP.”

Owned by Canada-listed OceanaGold Corp., the local entity operates the Didipio gold-copper mine in Nueva Vizcaya province in Luzon.

The IPO involves the sale of 456 million shares priced at up to P17.28 each, which would value 100 percent of OceanaGold Philippines at almost P40 billion. Based on its latest timeline, the shares will be priced on April 17 while the offer period will run from April 22 to April 26. The offer is for the sale of up to 20 percent of the company to outside investors. It will involve secondary shares owned by OceanaGold (Philippines) Holdings Inc., a unit of OceanaGold Corp. Because these are secondary shares, proceeds from the offer will go to the selling party.

BDO Capital & Investment Corp. was hired as sole global coordinator, domestic underwriter and book runner while CLSA Ltd. was tapped as international underwriter.

OceanaGold Philippines also set a dividend policy, effective on the listing date, to pay 90 percent of fresh cash flow to shareholders. It also noted in the prospectus plans to declare $10 million in cash dividends to shareholders by April, a month before the planned IPO.

“Based on the [OceanaGold Philippines’] 2023 technical report, and the company’s reserves-only mine plan, the estimated average after tax free cash flow of the company is approximately $75 million per year from 2024 through 2028, using consensus gold and copper prices,” the prospectus showed. The life of the Didipio mine is estimated to run through 2035. “However, an extension to the mine life of the Didipio mine is possible if the company is successful in converting its mineral resources into mineral reserves,” the prospectus showed. INQ

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