PNOC-EDC stock offer price range set
Monday, November 20, 2006
By MYRNA M. VELASCO
The offer price in the upcoming stocks listing of the Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) has been prescribed at P2.50 to P3.20 per share, according to a source privy to the process.
The pricing proffered by its financial advisor, CLSA Exchange Capital, has been calculated on price earnings ratio of 5.68x to 7.27x using forecasted earnings for 2006 as basis.
The PNOC’s geothermal and energy resource development arm planned to offer 4.2 billion to 5.4 billion shares, which accounts for 28 to 35 percent of its equity.
Targetted proceeds at the initial public offering has been set at 0 million to 0 million; and mainly programmed for the upgrading and acquisition of new drilling facilities for the company and for the settlement of remaining contractual obligations.
The source further disclosed that international marketing for the stock offering already started.
Roadshows to kick off November 20 have been scheduled in Singapore, Hongkong, London, Frankfurt and United States (primarily in Boston, New York and San Francisco).
Pre-marketing in the domestic market was said to have been concluded as of Friday in Manila; and will stretch until November 20 and 21 in Cebu and Davao.
PNOC-EDC tapped BDO Capital & Investment Corporation, Development Bank of the Philippines; Land Bank of the Philippines and ING as issue managers and domestic lead underwriters.
Of the shares allotted for listing, it was noted that PNOC-EDC planned of offering about 70 percent to foreign investors.
It was gathered that there are actually several investors eyeing to buy block shares in the scheduled offering.
The Philippine Stock Exchange (PSE) indicated that CLSA might exercise the greenshoe option, which would allow underwriters to sell additional shares when the demand is higher than expected.
While working aggressively on its privatization, PNOC-EDC is also pursuing notch higher the implementation of various projects geared toward further development of the country’s geothermal resources.
Its core goal would be to surpass the record of the United States in tapping geothermal resources for power generation; hoping that the Philippines would finally be a leader in this sphere by 2010.
In its line-up of new projects are the 49-MW Northern Negros geothermal facility; 20-MW Palinpinon II optimization; 20-MW Mindanao optimization project; 40-MW Tanawon geothermal project; 100MW Southern Leyet geothermal project; 40MW Manito-Kayabon geothermal project; 40-MW Dauin geothermal project.
PNOC-EDC officials noted that the implementation of these projects would be advanced depending on certain conditions; such as the availability of funding and the setting up of related infrastructure, such as transmission lines to ensure dispatch of the plants’ outputs.
If there is anything certain, officials assured that even with its privatization, PNOC-EDC is still keen on positioning itself as a strategic player in the geothermal industry and in ensuring reliable and reasonably priced electricity for consumers. (MMV)
posted by philpower @ 6:51 AM,
