Pilipinas Shell shares go on sale for ₱67 apiece

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Metro Manila (CNN Philippines) — Shares of Pilipinas Shell Petroleum Corp. will go on sale on Wednesday, priced at ₱67 apiece.

A total of 27.5 million shares will be available to local small investors, with the retail sale running from October 19 to 25, the oil company said in a statement.

It will then list on the stock market on November 3, under the ticker symbol "SHLPH." Another 55 million shares will be allocated for traders on the Philippine Stock Exchange.

"We are trying to get as many Filipinos as possible to be a part-owner of Pilipinas Shell, a company which we believe will give stable, very good returns for investors who will come in," country chair Edgar Chua said during the launch on Monday.

The initial public offering (IPO) is also made more "meaningful" as retail investors now have broader access to participate in the deal, according to Reginaldo Cariaso, managing director of BPI Capital Corp., the domestic lead underwriter and bookrunner.

Application to purchase forms will be available online and in select Shell branches and major malls across the country.

The local unit of Royal Dutch Shell Plc hopes to raise ₱19.5 billion from the IPO, with a total 291 million shares up for sale.

Eighty percent of the shares were sold to institutional investors both local and foreign. Cariaso said the deal saw strong demand, with "high-quality, long-term" investors taking up the stock.

The proceeds of the IPO will go to Pilipinas Shell's capital expenditure, working capital and general corporate expenses. The oil company currently has more than 900 stations across the country. It also has a refinery in Tabangao, Batangas and an import facility in Cagayan de Oro.

Pilipinas Shell is going public at a time when the stock market has been on the dip, but company officials say they are focused on their prospects in the long-run.

"On the backdrop of strong economic fundamentals, relatively low auto penetration rates, and increasing investment in infrastructure, the company is well-positioned for growth," Cariaso said.

Pilipinas Shell follows Villar-owned Golden Haven Memorial Park, Inc. and cement manufacturer Cemex Holdings Philippines, Inc. in going public this year.

Other companies applying for IPOs are pizza chain Shakey's Pizza Asia Ventures, Inc. and app developer Xeleb Technologies, Inc., among others.