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The PNOC-Alternative Fuels Corp. (PNOC-AFC), the biofuels unit of state-run Philippine National Oil Co. is pushing plans to undetake an initial public offering (IPO) next year, PNOC-AFC chairman Renato Velasco said.

Velasco told reporters that various initiatives have already been undertaken in relation to the planned shares offering.

“That’s already in the pipeline. We have previously thought of going into the stock market to generate our own funds to finance many of the projects that have already been lined up,” Velasco said.

He said they are starting to prepare for the exercise. “We will do it when we are ready and we could be entering the market by either 2008 or 2009.”

“In spite of the bull run at the local bourse, it is however difficult to enter the market unprepared,” he added.

Velasco said the company would also need to proceed with the IPO to raise the much-needed funds to finance their projects.

“We see it happening within the next three years. Our company is relatively new and we need to establish a track record,” he said.

The official, however, did not indicate how much would be offered to the public. “We will still have to study that. We have to know what’s the best option for us,” he said. 

Velasco said part of the company’s preparation for the listing of its shares in the stock exchange is to enter into various joint ventures with both local and foreign firms for the construction of biofuel plants all over the country.

These ventures, he said, would allow the firm and its stockholders an increase in the value of their investment in PNOC-AFC.

Last Wednesday,  PNOC-AFC signed a $1.3-billion deal with UK-based bioenergy firm NRG chemical Engineering to build biofuel refineries and plantations in the country.

PNOC-AFC was created to take over the functions of the PNOC-Petrochemical Development Corp. Taking the lead in actively promoting the use of alternative fuels in the country, PNOC-AFC is now talking with various investors for the planting of biofuel feedstocks and construction of biofuel refineries.

PNOC-AFC was established in July 2006. Its primary mandate is to explore, develop and accelerate the utilization and commercialization of alternative fuels in the country. 

According to Velasco, aside from the IPO plans, the aggressive promotion of alternative fuels development is also consistent with the company’s vision. 

“We want to become one of the most prominent alternative energy-producing companies in the region,” he said.