Petrolift Inc postpones IPO

Petrolift Inc., an oil and gas tankering and bulk logistics services provider, has postponed indefinitely its initial public offering (IPO) scheduled this month due to the recent coup attempt by rebel soldiers.              

“Due to Thursday’s mutinous attempt to undermine the Arroyo administration, we were advised to revisit the company’s IPO timetable,” Petrolift said in a statement to the Philippine Stock Exchange.

Petrolift’s offering period was supposed to start last Monday, Dec. 3.

“Prospective investors, especially institutional accounts, both local and foreign, remain keen on the company’s planned IPO. As such, Petrolift’s IPO will be rescheduled at the soonest possible time,” BDO Capital and Investment Corp., the lead underwriter for the IPO, said.

Last Thursday, renegade soldiers stormed an upscale hotel in the Makati business district, calling for the ouster of President Arroyo.

Meanwhile, Petrolift said it continues to expand and grow its business to meet the demands of the industries they serve, including petroleum, mining, biofuels and other related industries.

Petrolift is set to re-launch its newly fitted double hull vessel this month. The vessel is one of  six tanker-barges used to transport fuel oil.

The company has been proactively responding since 2006 to the call from government and the Maritime Industry Authority to shift from single- hull vessels to double-hull tankers for transporting petroleum products by April 2008.

Petrolift may raise up to P5.46 billion from the sale of 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.

The offer shares will represent about 28.8 percent of Petrolift’s issued and outstanding capital stock post-IPO.

Petrolift expects its market capitalization to reach between P8.68 billion to P12.15 billion after the IPO.

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 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.