Regulator approves Phoenix’s plan to sell P2B in preferred shares

The Securities and Exchange Commission (SEC) has approved the plan of petroleum distributor Phoenix Petroleum Philippines Inc. to sell to the public as much as P2 billion worth of preferred shares.

Phoenix was authorized to sell at least 10 million non-voting preferred shares at P100 a share with an option to issue another 10 million preferred shares.

The company has named PentaCapital Investment Corp. sole issue manager and joint lead underwriter. Other joint lead underwriters are Multinational Investment Bancorporation and AB Capital and Investment Corp.

Proceeds will be used by the company to complete the construction of 61 retail stations in the key cities of North and South Luzon, Visayas and Mindanao as well as put up storage facilities in Cebu and General Santos.

Part of the offering will have an optional redemption on the third year of listing and subject to a step-up or increase in dividend rate by 2 percentage points on the fifth anniversary. Another series will be entitled to an optional redemption date on the fifth anniversary and subject to a step-up rate of 2 percentage points on the seventh year after listing.

Preferred shares are prioritized when it comes to dividend payout.

Phoenix is in the business of trading refined petroleum products, lubricants and other chemical products. It also operates depot and storage facilities as well as allied services.

As of end-June, Phoenix had a total of 443 service stations of which 158 were located in Luzon, 62 in Visayas and 223 in Mindanao. It has a share of 4.1 percent in the local petroleum market.

The company is led by president and chief executive officer Dennis Uy. Doris Dumlao-Abadilla