Seaoil to raise P3B from planned IPO next year

Independent oil player Seaoil Philippines Inc. said yesterday it plans to tap the local equities market in the first quarter next year to raise up to P3 billion through an initial public offering (IPO) of its shares.

Seaoil president Glen Yu said the decision to go public was spurred by the string of positive economic developments which include an improving economy and a strong retail industry that saw vehicle sales growing by 16.6 percent in the first nine months of this year.

He said the company may sell between 20 to 30 percent of its outstanding shares to the public.

He added that proceeds from the IPO will be used to fund the rollout of additional stations across the country. From its existing 154 gas stations, the network is expected to grow to more than 500 by 2011.

SB Capital Investments and Multinational Investment Bancorporation have been tapped as lead underwriters for the share issue.

Last week, Seaoil sought to raise its capitalization to P1 billion from only P200 million in preparation for its planned IPO.

Among the oil refiners in the country, only the semi-government Petron Corp. is listed at the stock exchange.  

In addition, Seaoil plans to put up a bioethanol plant estimated to cost between P1.2 billion and P1.5 billion. This facility, to be built in 2009, is expected to produce 100,000 liters per day to serve the domestic market.

Seaoil is optimistic over the prospects of the ethanol plant following the signing of the Biofuels Act, which mandates an initial five-percent ethanol  blend for gasoline, ensuring a steady market for ethanol producers. At present, the country still imports ethanol.

Seaoil was incorporated in 1996, making it the first independent petroleum player to open a gasoline retail station. It now employs over 500 highly motivated and skilled personnel and constitutes over one percent of the country’s annual downstream oil industry’s revenue of P240  billion.