Shell's Philippine Unit Ready for IPO

Shell's Philippine Unit Ready for IPOShell's Philippine Unit Ready for IPO

The Philippine unit of Royal Dutch Shell said on Monday it was looking to launch a long-delayed initial public offering sometime next year, and may sell even more than the minimum requirement of 10% of common stock. "We're getting ready for it," Shell Philippines Country Chairman Edgar Chua told reporters on the sidelines of a Shell event. "We've discussed it with the [Department of Energy]; it's just a question of timing," Reuters reported. Pilipinas Shell Petroleum Corp, which operates one of the country's two refineries, is required under a nearly two-decade local law to conduct an IPO. The company had previously cited unfavorable market conditions and the need to upgrade its local refinery in deferring a share sale. "Shell's refinery upgrade is underway and could be completed by the middle of November," Chua said. The IPO proceeds could be used to pare debt or finance capital expenditure. Shell is also pursuing plans to set up a local LNG import facility and on Monday switched on a new offshore platform for its Malampaya natural gas production in the southwestern part of the Philippine archipelago.