MANILA, Philippines – Pilipinas Shell Petroleum Corp. (SHLPH) debuted in the Philippine Stock Exchange with a market capitalization of P108 billion.
The Dutch Shell Plc local unit had an initial public offering (IPO) of 291 million common shares tendered at P67 per piece.
In a media briefing after the listing ceremony in Makati City, Reginaldo Anthony B. Cariaso stated that Shell stocks are considerable for index inclusion. Cariaso is the managing director and chief operating officer of BPI Capital Corp., which is the domestic lead underwriter and bookrunner.
Cariaso added that the initial capital expenditure of the company exceeded the value of 9.38 billion common shares of Petron Corp., which is equivalent to P96.83 billion. Petron Corp. is also a member of Philippine Stock Exchange Index (PSEi).
Jaycee De Guzman, founder of the Stock Signals Philippines, released a 7-page comparative analysis between SHLPH and PCOR last October 27, 2016. That newsletter aimed to help all Stock Signals clients make a data-driven decision for themselves.
On Thursday, by the time trading closed, the company shares increased to P67.20 per piece, which is a climb by 0.30 percent or 20 centavos. Before the shares increase during the day, it dropped to P66.60 from its initial trading price of P67.
A&P Securities, Inc. Equity Trader, Frank Gerard J. Barboza, stated in a text message that the company’s shares have not advanced further due to the current tough market environment.
In order to be part of PSEi, a company must rank among the quarter having the highest daily value monthly and 30 largest in market capitalization. In addition, the listed firm must also meet the 12 percent float prerequisite.
The incapability of Pilipinas Shell to increase its market capitalization is due to trend incertitude as U.S. presidential election draws near.
The petroleum company failed to meet the debut performances of other companies listed via IPO route in 2014, excluding Phoenix Semiconductor Philippines Corp. Phoenix Semiconductor closed without changing its IPO price.
From its base deal of 275 million shares, Shell IPO raised P18.43 billion. If the company considers extra allocation of its 16 million shares, the proceeds could reach P19.5 billion.
On Thursday, PSEi had a loss of 91.49 points, resulting to 7,160.91 during its ninth consecutive session.
On Wednesday, more shares were thrown by foreign investors with net sales increasing from P1.47 billion to P1.88 billion.
Stock Signals Philippines is your go-to website for stock analysis, tips and strategies in trading and investing in the Philippine stock market. StockSignals.ph is a property of Equilyst Analytics, Inc.