Shell’s Philippine unit still targets IPO in 2016

Pilipinas Shell Petroleum Corp. has assured the Philippine government that its plan to undertake an initial public offering (IPO) this year is still on the table, Energy Secretary Zenaida Monsada said Wednesday.

Ms. Monsada said a letter sent to the Department of Energy by the local unit of the Royal Dutch Shell PLC said that the long-awaited share sale has been approved the Shell board and “is definitely (pushing through) this year.”

The IPO proceeds will be used to fund the oil company’s working capital and repay debts. Pilipinas Shell owns one of only two oil refinery in the Philippines, and has the second=largest share of the domestic oil market.

Details of the IPO are still being finalized and Pilipinas Shell has reportedly engaged BPI Capital Corp. and J.P. Morgan as underwriters.

Source: MarketWatch