PNOC-EC commits to bourse listing

MANILA, Philippines - State-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC), whose trading of shares were suspended, said it is committed to remain listed in the local bourse.

The oil exploration arm of the government will sell roughly 218 million new shares to increase its public float in the first half, its top official said  last week.

“The PNOC-EC board is 100-percent sure that there are no plans to delist. That is also the decision of the Finance Secretary,” PNOC-EC chairman Gemiliano Lopez, Jr. said in a phone interview.

“We are ready to sell shares,” he said.

Last week, the Philippine Stock Exchange (PSE) suspended the trading of seven listed firms including PNOC-EC, that failed to increase their public ownership level to a minimum 10 percent.

The Bureau of Internal Revenue earlier issued a ruling imposing a final tax of five percent or 10 percent of net capital gains arising from the sale of shares of listed firms whose public ownership is below 10 percent. Trades involving compliant listed firms are subject to a mere 0.5 percent stock transaction tax as mandated by law.

Lopez said PNOC-EC will likely move to increase its public float from the current 0.21 percent before June.

The PSE will delist erring firms if they remain non-compliant after June 30.

Lopez said that in November, PNOC-EC was already in talks with both foreign and local institutional investors.

However, negotiations bogged down during the holiday season and PNOC-EC was not able to hurdle documentary requirements.

Interest in the local stock market, the second best performer in Southeast Asia last year, remains high given robust economic prospects and corporate expansion in the Philippines.

In May, the state-run firm appointed Swiss banking giant UBS Ag to facilitate the share sale. A PNOC-EC source said the company can generate P7 to P10 billion the follow-on offering.

Lopez said proceeds from the offering of 218 million shares will be used for general corporate purposes and expansion plans of PNOC-EC.

PNOC-EC, which has a minority stake in the profitable Malampaya gas-to-power project in Palawan, is into indigenous oil, gas and coal exploration and production.