SEC green lights P2.21-B Frontier Oil IPO

The Securities and Exchange Commission on Friday said Frontier Oil Corp. was given the green light to go ahead with its P2.21 billion initial public offering in November, making it the fifth company to go public this year.

 

The SEC en banc on Thursday approved the plan of Frontier Oil to sell 883.626 million primary shares at P2.50 per share, based on the oil and gas explorer's registration statement. 

 

According to the company, the offer shares would be available from Nov. 25 to Nov 29 with a listing date likely to happen Dec. 9, 2013.

        

It hired Philippine Commercial Capital Inc. and Unicapital Inc. as issue managers.

 

Money from the share sale will finance the drilling of service contracts (SC) 52 and 50. SC 52 is an onshore block in the Cagayan Basin and SC 50 is refers to an offshore site in Palawan.

 

Frontier Oil holds the sole interest in SC 50, and a 90-percent stake in SC 52 in which Trans-Asia Oil and Energy Development Corp., hold to option own a 10 percent interest.

 

“The company’s two near-term projects, being the Nassipping Field is SC 52 and the Calauit Field in SC 50, have both been matured to a point of being production-ready with each having flowed gas and/or oil to surface as a consequence of previous drilling campaigns,” according to Frontier Oil.

 

“Bringing each of these two projects on stream and thereby providing Frontier Oil with its first revenues from oi/gas production is this offerings primary commercial proposition,” the company added.

 

From the IPO money, Frontier Oil intends to use  P1.55 billion to develop SC 50 and P276.876 million for SC 52 and P182.873 million for working capital.

 

On the heels of Travellers International Hotel Inc., Harbor Star Shipping Services Inc., Robinsons Retail Holdings Inc. and Concepcion Industries Inc., Frontier Oil is the fifth company to go for an IPO this year. – VS, GMA News