PNOC-EDC plans additional stock offering
Tuesday, January 30, 2007
By MYRNA M. VELASCO
The management of the Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) is currently studying and firming up plans for initial public offering (IPO) of additional 20 percent of its shareholdings within the year.
"It is still being studied. If we will push through with that, it should be after the lock-up period of six months, which means it should not be before June 13, 2007," PNOC-EDC president and CEO Paul A. Aquino said.
He added the listing of at least 60 percent of the company’s shares has always been part of its privatization blueprint, "but we will have to re-study the parameters very carefully."
The level of targeted revenues from the next batch of stock offering is among the concerns being validated by PNOC-EDC’s management. Should plans push through, the extra cash it would generate will be earmarked for projects that the company has been lining up for implementation.
The company first listed 40 percent of its shares at the Philippine Stock Exchange (PSE) on December 13, 2006; and is now traded under the ticker symbol "EDC."
From that privatization exercise, the company fetched P16 billion in proceeds; of which half flowed directly into PNOC-EDC’s coffers.
Company officials noted the IPO revenues were to bankroll various energy development projects, primarily geothermal facilities and the upgrading of its drilling rigs.
The other half of the proceeds amounting to P8 billion was shared equally by its mother unit PNOC and the national government.
PNOC said it will allocate the funds to projects intended for the development of alternative fuels which is part of the energy development program of the Arroyo administration for the country to attain energy independence.
The national government, on the other hand, noted that it will study the allocation of its share from the PNOC-EDC’s listing proceeds, such as in infrastructure and even in easing the budget deficit.
The company’s offering was considered one of the most successful IPO events in the local bourse last year. Its share price rose substantially, peaking at P5.10 per share from P3.20 when it debuted in the market.
PNOC-EDC has the chunk of geothermal energy capacity in its sleeve and its accomplishment in this sector strategically positioned the Philippines as the second largest geothermal power producer in the world, next to the United States.
The target being worked on by PNOC-EDC officials is to surpass the US ranking on that sphere; and its line-up of future projects will bring the company closer to that goal. (MMV)
posted by philpower @ 9:56 AM,
