PNOC-EDC to launch IPO in Nov

PNOC-Energy Development Corp. (PNOC-EDC) will launch its initial public offering (IPO) in November to fund its future power projects, a Philippine Stock Exchange (PSE) official said Thursday. PNOC-EDC, a unit of state-owned Philippine National Oil Company (PNOC), is the Philippines' largest producer of geothermal energy. As of end 2005, it operated 11 geothermal steamfields in four contract areas with power plants having a total installed capacity of 1,149-megawatts, accounting for nearly 60 percent of the country's installed geothermal capacity. PSE president Francis Lim said PNOC-EDC will sell 4.2 to 5.2 billion shares to both domestic and foreign investors in its IPO. Fifty percent of the total shares of PNOC-EDC would represent new or primary offering. The other half accounts for secondary shares or those to be sold by parent firm PNOC. "We were informed that the price range would be determined around November 20," Lim said. PNOC-EDC has tapped BDO Capital and Investment Corp., Development Bank of the Philippines, ING and Land Bank of the Philippines as issue managers and domestic lead underwriters. CLSA Ltd. will be the sole bookrunner and international underwriter. PNOC-EDC hopes to list on the PSE December 12, Lim said. The PSE board approved late Wednesday the listing of PNOC-EDC two days after the company formally filed with the bourse its preliminary prospectus on its highly anticipated IPO. The prospectus, however, did not indicate the amount of shares that would be up for sale as well as the proceeds the company is expected to generate. The proceeds are expected to fund the P2.98-billion budget set by the company for 2007. Bulk of the capital expenditure would go to the Phase 1 of the North Luzon wind power project phase. - GMANews.TV