Rules on oil firms’ IPO out in two weeks — Camacho

Energy Secretary Jose Isidro "Lito" Camacho vowed yesterday to finalize in two weeks the rules that will implement the requirement for oil companies to offer 10 percent of their shares through initial public offering (IPO).

"Internally, we are hoping to come up with the IRR implementing rules and regulations in the next two weeks. I asked my staff to review and come up with something that we could discuss on," the newly-appointed energy chief said.

Under the Oil Industry Deregulation Law (RA 8479) of 1998, oil firms are required to offer at least 10 percent of their shares to the public within three years after passage of the law.

The law is of little consequence to industry leader Petron Corp. which had its shares listed in the stock exchange seven years ago.

Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc. have been requesting for the deferment of their IPOs because of the lackluster performance of the local stock exchange and the absence of an IRR. In separate position papers, Shell and Caltex are asking for a two-year deferment of their IPOs.

According to Camacho, the "spirit of the law" actually compels these oil companies to undertake the IPO but these are factors that have to be considered for the department to push these firms to offer their shares to the public.

"I don’t want to give them fixed extension or timetable to hold their IPO. If we find it conducive, we will compel them to push through with the offering as soon as possible," he said.

The market is awaiting the listing of Shell and Caltex as these two oil companies’ offering will likely boost the local exchange’s performance.