Mirant to tap advisor for IPO

ILOILO CITY – Mirant Philippines Inc., a subsidiary of US-based Mirant Corp. and the country’s largest private power producer, is ready to choose its financial advisor for its planned initial public offering (IPO) by the end of this year or early next year.

In a press conference here after the groundbreaking ceremony for the new investment of Mirant Philippines in Panay Power Corp. (PPC), US-based Mirant Corp. president Marce Fuller said "we are committed to do an IPO. We are having discussions with several financial institutions to handle our IPO. We will probably come up with a decision (on the financial advisor) by end of this year or by early next year," she said.

But Fuller admitted that up to now the company has just accomplished about 10 percent of the preparation needed for an IPO.

Mirant Philippines president Edgardo Bautista said part of the preparation is trying to expand and diversify its operations in the Philippines. "Part of our IPO preparation is our recent move to invest in Toledo power plant in Cebu and in Panay Power in Iloilo," Bautista said.

Fuller said these strategic moves are being carried out to ensure that Mirant Philippines’ IPO will be successful.

But Fuller admitted that they could not yet identify the "right timing" for such an undertaking, taking into account factors like the performance of the economy and the local stock market.

"All these (investment) steps have something to do with our efforts to have a successful public offering," Fuller said.

Fuller also pointed out that the filing of bankruptcy by the Mirant Corp. has nothing to do with the company’s international operations including that of the Philippines. "We want to assure that the bankruptcy filing is only for the US and it has no impact on our other international operations," she said.

Energy Secretary Vincent S. Perez has been prodding Mirant Philippines to undertake an IPO after becoming the country’s most profitable company in 2001.