MANILA - Pilipinas Shell Petroleum Corp. debuted on the Philippine Stock Exchange on Thursday, with the company hoping to expand its century-old business in the country, while on the lookout for possible power investments.
Pilipinas Shell shares opened lower, but recovered in early trading, up 0.07 percent to P67.05 compared to the P67 offer price. The Philippine Stock Exchange Index was down 1.22 percent to 7,163.64, joining a regional slump on worries over next week’s presidential elections in the US.
“Some parts of it will go the shareholders, equally important are the investment programs that we have moving forward. We continue to expand our retail network year-on-year. That consumes a fair bit of capital,” Pilipinas Shell President Cesar Romero told ANC’s “Market Edge with Cathy Yang.”
“We remain open-minded about energy opportunities,” Romero said, when asked if the company was considering investing in the government’s infrastructure program.
Pilipinas Shell, which hoped to raise P19.5 billion, is the third initial public offering in the PSE this year. Cemetery operator Golden Haven Memorial Park Inc. raised P778 million in April while Cemex Holdings Philippines raised P25.13 billion in July.
“It’s a rather slow start compared to the previous IPOs. There’s a different dynamic today. We’re coming off an eight-day slide. The sentiment is really down,” A&A Securities research head Jun Calaycay said of Pilipinas Shell’s listing on Thursday.
“The challenge is overcoming market sentiment right now,” he said.