SEC okays Petrolift’s P5.46-B IPO

The Securities and Exchange Commission has given the green light for the initial public offering (IPO) of oil and gas tanker Petrolift Inc. which is estimated to generate as much as P5.46 billion in proceeds.

Based on its amended registration statement filed with the SEC, Petrolift is offering as much as 713.38 million shares to the public at a price ranging from P4.90 to P7.65 each share. Of the shares to be offered, 326.25 million to 509.56 million new common shares will be issued by way of an IPO while 130.5 million to 203.82 million will be sold by existing shareholders through a secondary sale.

The offer shares will represent about 28.8 percent of Petrolift’s issued and outstanding capital stock post-IPO. The company will then have a market capitalization of between P8.68 billion to P12.15 billion.

The offering has been tentatively set on Dec. 3 and will run until Dec. 10. Listing of the shares, on the other hand, has been scheduled on Dec. 18.

BDO Capital & Investment Corp. has been tapped as issue manager and lead underwriter for the IPO while BancPros Inc. has been designated as financial advisor.

In preparation for the IPO, Petrolift has raised its capitalization from P400 million to P2.1 billion.

Proceeds from the offering will be used by the company to acquire more double-hulled tanker vessels, convert existing tankers to double hull and acquire dry bulk carriers and heavy equipment for mining logistics.

The IPO is also in preparation for the impending implementation of an International Marine Organization (IMO) regulation accelerating the shift to double-hull ships from single-hull by 2008 for fuel. Compared to single-hulled tankers, double-hulled vessels provide an added layer of protection to help maintain cargo integrity by minimizing the risk of spillage and associated marine pollution in the event of an accident.

The Petrolift Group also transports petroleum products, liquefied petroleum gas (LPG) and chemicals to major ports and depots in the country. Its clients include leading oil players Petron Corp., Pilipinas Shell Corp. and Chevron.

To further boost its cash flow, the group is considering venturing into the bioethanol business to support the government’s biofuels program.