Mirant postpones IPO to early 2004

Mirant Philippines Inc. has decided to postpone anew its plan to undertake an initial public offering (IPO), moving the schedule from mid-2003 to early 2004.

MPI president Edgardo Bautista said while the preparations for the IPO are ongoing, the company needs more time to prepare to list 10 to 15 percent of its shares in the local stock market.

"It is a long process and we think we can not meet the target next year, maybe the following year," Bautista said.

Mirant was supposed to offer its shares to the public this year but decided to postpone it to the middle of next year due to time constraints.

Proceeds from the shares offering were supposed to finance the firm’s budgetary requirements.

Bautista said the company expects lower earnings for 2002. "We expect that our net income this year would be slightly lower than last year. It’s because of the economic conditions," he said.

The IPO plans of Mirant are also being hampered by the decision of the government to review its contracts with independent power producers (IPPs). Mirant is the largest private power producer in the country.

Paul Flake, MPI vice president, earlier said Mirant has started to evaluate proposals from various financial advisors but said there is no rush in chosing one.

Flake said ING Barings and ABN Amro are among those that have indicated keen interest in handling the company’s IPO.

"It is still early to say when we will select a financial advisor. But as soon as they heard we plan to do it, they just started approaching us," Flake said.

The board of directors of US-based Mirant Corp. has already approved the listing of its Philippine subsidiary in the stock market.

Energy Secretary Vincent S. Perez said Mirant should sell part of its shares to the public after registering a substantial net income of P8.5 billion in 2000.

MPI currently operates Pagbilao and Sual coal-fired power plants. It also holds a 20-percent stake in Ilijan natural gas-fired power plant.