PNOC-EC gears up to meet public float req’t

MANILA, Philippines – The government is pushing for a follow-on offering for its oil and gas exploration arm, PNOC-Exploration Corp, to meet requirements needed to remain listed in the stock exchange.

The Philippine National Oil Co.-Exploration Corp (PNOC-EC), which is 99.71% owned by the government, has a public float less than the required 10%.

The Philippine Stock Exchange (PSE) has announced that listed companies that do not comply face suspension or delisting after the grace period expires in 2013.

In a disclosure on Monday, January 30, PNOC-EC said it is about to choose its financial advisor for the follow-on offering so it could proceed with the valuation and book building process that could take about 4 months.

In a press briefing also on Monday, Energy Secretary Jose Rene Almendras commented that he prefers to keep PNOC-EC listed citing the discipline instilled in those that access public funds.

The Department of Finance’s go-signal will be needed for the actual timing and value of the PNOC-EC shares.

“We have a clear understanding with the DOF that PNOC-EC shares will only push through if the valuation of the shares will be advantageous to the government,” PNOC-EC said. – Rappler.com