Shell asks for more time to hold IPO

MANILA, Philippines – Pilipinas Shell Petroleum Corp. (PSPC), the local subsidiary of Royal Dutch Shell Plc., is asking the government for more time to hold an initial public offering (IPO) as mandated by the Downstream Oil Industry Act (DOIA) of 1998.

Speaking to reporters, PSPC vice president Roberto Kanapi said the company is currently finishing a study on its refinery upgrade in light of the completion of the Euro IV emission standards in the country.

“And because we are now finalizing the study on upgrading the refinery, we are requesting the energy department (DOE) to give us time up to the latter part of this year,” he said.

Under the DOIA, oil refiners are required to list at least 10% of their shares in the Philippine Stock Exchange 3 years after the law’s enactment. The Department of Justice, however, said in an opinion that the 3-year period is not mandatory and does not prohibit an IPO to be conducted after the lapse of said period.

Recently, PSPC was asked by the DOE to report on the progress of its plans to comply with the law’s provision on stock exchange listing.

Kanapi said the listing of shares depend on whether or not the company would maintain and upgrade its existing oil refinery in Tabangao, Batangas.

PSPC made similar pronouncements in the past. In 2010 and 2011, the company said the decision to list was under review and depended on market factors.

The DOE, through oil industry management bureau head Zenaida Monsada, believes the time is ripe for PSPC go public and take advantage of the optimism in the Philippine economy. – Rappler.com