MANILA, Philippines — Australian-Canadian firm OceanaGold Corp. has filed for an initial public offering (IPO) of up to P7.9 billion for its Philippine subsidiary in compliance with the conditions of its renewed mining contract.
OceanaGold said its wholly owned subsidiary OceanaGold Philippines Inc. (OGPI) has filed the registration statement and draft preliminary prospectus with the Securities and Exchange Commission, as well as its listing application with the Philippine Stock Exchange (PSE).
OceanaGold said that it would sell a 20 percent stake in OGPI or about 456 million common shares at a maximum price of P17.28 per share ($0.31 per share). The amount is double the minimum 10 percent common share required under its renewed 25-year Financial or Technical Assistance Agreement (FTAA) with the government.
“Due to the PSE’s minimum public float requirement of 20 percent, OGPI intends to list all of its issued and outstanding common shares and publicly float 20 percent thereof on the main board of the PSE,” the firm said.
OGPI operates the Nueva Vizcaya-based Didipio gold and copper mine that is expected to produce between 120,000 and 130,000 ounces of gold and 12,000 to 14,000 metric tons of copper.
“We are proud of Didipio’s track record as a proven high-quality, long-life, low-cost gold-copper mine and look forward to welcoming new Filipino and international shareholders to participate in the expected robust free cash flow generation, consistent dividend payments, and future potential at Didipio,” OceanaGold president and CEO Gerard Bond said.
“We believe that the future at Didipio is bright and look forward to it continuing to create value for both OceanaGold and our new OGPI shareholders,” Bond said.
OGPI has tapped BDO Capital and Investment Corp. as its global coordinator and domestic underwriter and bookrunner, while CLSA will serve as its international underwriter.
Didipio mine is spending P169 million this year for its community development fund, about 24 percent higher than last year’s P136 million. The budget will be used to construct farm-to-market roads, conduct road improvements and establish multi-purpose buildings for the targeted barangays.
Last year, OceanaGold invested between $35 million and $50 million in Didipio mine to sustain its mining operations.