MANILA - Shares of Philippine oil firm Petron Corp, a unit of the country's most diversified conglomerate San Miguel Corp, fell as much as 13.6 percent in early trades on Thursday, tracking a discounted price from an overnight private placement.
Petron raised $120 million from a private placement priced at P11.50 ($0.26) per share, discounted from Wednesday's close of P13.40 ($0.30).
Proceeds from the deal will be used to fund the ongoing upgrade of its 180,000-barrels per day Bataan refinery.
Petron expects to boost its output by 40 percent once it completes the plant expansion by the end of this year.
"The private placement basically resulted in a drop in the price," Lexter Azurin, head of equity research at Unicapital Securities Inc, said in a phone interview in Manila.
Analysts remained bullish on the stock, saying proceeds from the private placement will be used for expansion and could fuel future company earnings higher.
Petron's programmed expansion "should increase its Philippines sales volume by 25 percent over the next two years," Gregg Adrian Ilag, equity analyst at AB Capital Securities Inc, said in a separate phone interview.
He said Petron profits could "double" in the two-year period from 2013, making the firm's earnings growth "faster than any other downstream oil company in region."