He said in a phone interview that PNOC-EC and UBS are finalizing the valuation for a follow-on offering, and it should be completed within the next few weeks.
“As to whether to sell, we will based our decision on the UBS’s market recommendations. It’s a matter of having the right price at an opportune time,” he added.
Lopez quickly added that they want to get the best value from the additional public offering.
At present, the government owns 99.71 percent of PNOC-EC shares, and the public owns 0.29 percent. And in order to comply with the 10-percent minimum public ownership rule of the PSE, PNOC-EC plans to sell 9.79 percent of total shares or 217,715,379 shares to the public.
In April, PNOC-EC enlisted the services of UBS to be its financial advisor, sole underwriter, and global coordinator for its additional public offering.
PNOC-EC said the due diligence and valuation process by UBS could take two months to complete.
After this, PNOC-EC said it will request the Philippine Stock Exchange (PSE) and Securities and Exchange Commission to approve the follow-on sale. If given the go-signal, PNOC-EC said it plans to hold the additional public offering before the December 31 deadline set by the PSE.
Energy Secretary Jose Rene Almendras earlier hinted that the government is keen on keeping PNOC-EC listed.
Almendras said keeping PNOC-EC listed will put the appropriate discipline to ensure that it complies with all the requirements of the market, although, he noted that that it may be the right time to hold another offering. A group has been formed and headed by the Department of Finance to help determine the timing and value of the said sale.
Almendras declined to give a specific timetable for that additional public offering saying that “unless stock market prices and demand being to increase anew.”
“We have a clear understanding with the DOF that additional shares will only be sold if its valuation are advantageous to the government,” PNOC-EC said.
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