Frontier Oil pushes back IPO timetable

MANILA, Philippines - Upstream oil exploration firm Frontier Oil Corp. has pushed back its P2-billion  initial public offering (IPO) timetable to give more time for investors to understand the business.

“In consideration of the present market condition, Frontier Oil, as advised by our underwriters, has reassessed the situation we are confronted with,” Frontier Oil CEO Kristoffer Fellowes said in a letter to the Philippine Stock Exchange (PSE).

“It is apparent that we need to adjust accordingly and perhaps find a more acceptable approach in educating the public,” Fellowes said.

Hence, the company extended its bookbuilding period to Nov. 22 from Nov. 15, with the price setting date moved to Nov. 25 from Nov. 18.

“It becomes imperative for Frontier Oil and its underwriters to afford its efforts more time, and perhaps dedicate such efforts to reach the wider public,” Fellowes said.

Frontier Oil’s IPO will be facilitated by issue managers Philippine Commercial Capital Inc. and Unicapital Inc.

The offer period will run from Nov. 28 to Dec. 4 instead of Nov. 25 to Nov. 29 while tentative listing date was pushed back to Dec. 11 from Dec. 9.

“We owe it to our investors, and the oil and gas industry that our endeavor to become a publicly-listed company will be a success,” Fellowes said.

Late last week, the PSE approved the revised IPO timetable.

The upstream oil exploration firm is set to become the ninth local firm to list in the local bourse this year.

Frontier Oil plans to sell 883.62 million common shares at an offer price of up to P2.50 apiece, or a total IPO value of P2.209 billion. It also applied for the shelf registration of 17.95 million shares that can be sold for as much as P2.50 per share or a total of P44.87 million.

Frontier Oil will use the IPO proceeds for general working capital and for the development of Service Contracts (SC) 50 and 52, which will provide the platform for the company’s continuing growth.

In February, Frontier Oil acquired from Singapore-based oil drilling firm Frigstad Energy Ltd. the rights to the 5,000-square kilometer SC 50, which requires P1.55 billion for development.

Frontier Oil said it will also spend P256.87 million in the fourth quarter for the 96,000-hectare SC 52, an onshore oil and gas block located in the Cagayan Valley.