Pilipinas Shell Petroleum Corp. country chairman Oscar Reyes said they have appointed Salomon Smith Barneys as the company’s financial advisor for its IPO plans.
Caltex Philippines Inc. country chairman Nick Florio, said they would be tapping JP Morgan Chase Manhattan to handle the public offering.
"We have a financial adviser. Since we got the deferral our financial adviser had gone a little quiet because there’s nothing really happening," Florio said. But Florio said Chase Manhattan’s "current advice is that it’s not the right time to go public."
The two oil companies are mandated under the Oil Deregulation Law of 1998 to offer at least 10 percent of their shares in the stock market through an IPO.
Based on the new implementing rules and regulations (IRRs) of the deregulation act, these oil firms will have to inform the Department of Energy (DOE) on the development of their IPO plans.
"We have filed a report to DOE last week about the status of the market. We are working closely with DOE so if the conditions warrant our IPO, we will push through with it," Florio said.
Reyes said Shell has complied with the quarterly report being imposed by the DOE. "If conditions are conducive we will go for it," he said.
Reyes and Florio are one in saying that the stock market is still not ready for their offering.
The two oil firms have been requesting for the deferment of their IPO because of the lackluster performance of the local stock exchange for the past few years.
The market is awaiting the listing of Shell and Caltex as these IPOs would likely boost the local exchange’s performance.