After a long delay in its anticipated public listing, Pilipinas Shell Petroleum Corp. (Shell) is pushing through with its entry in the Phil Stock Exchange with what could probably the country’s biggest initial public offering.
Shell is expecting to raise P29.7 billion in its stock market debut. The oil and gas company plans to use the net proceeds from the IPO to defray capital expenditures, working capital and other corporate expenses.
Lexter Azurin of Unicapital Securities Inc. said the IPO is going to hit the right timing as the market remains positive and bullish with President Duterte assuming his office. Azurain said valuations in the Philippines are currently high which enables companies to offer shares at a higher price compared to other regions.
Luis Limlingan, managing director of Regina Capital Development Corp., also expects PSPC’s IPO to be a success. Limlingan said there has been a clamor from investors for Shell to list in the local bourse. “The recent IPOs show that investors have been taking up the positions well and market conditions are ripe to price Shell at attractive valuations,” said Limlingan.
