PNOC-Alternative Fuels eyes IPO

JAKARTA, Indonesia – PNOC-Alternative Fuels Corp., a subsidiary of the  state-owned Philippine National Oil Co. (PNOC), is planning to undertake an initial public offering (IPO) in the near term, a top company official said.

PNOC-AFC chairman Renato Velasco told reporters attending a biofuels and feedstock conference here that the IPO plan is part of the firm’s medium-term goals.

"We see it (IPO) happening in three years time.  Our company is relatively new and we need to establish a track record first," he said.

The official, however, did not indicate how much would be offered to the public. "We will still have to study that. We have to know what’s the best option for us," he said.

Velasco said part of the company’s preparations for the listing of its shares in the country’s stock exchange is to enter into various joint ventures with local and foreign firms for the construction of biofuel plants.

These ventures, he said, would allow the firm and its stockholders enhance the value of their investments in PNOC-AFC.

The PNOC-AFC official has expressed optimism that the planned IPO would be as successful as that of sister company PNOC-Energy Development Corp. (PNOC-EDC) which went public last December.

PNOC-EDC was able to raise as much as P15 billion proceeds from the public offering.

PNOC-AFC was created to take over the functions of PNOC-Petrochemical Development Corp.

With a mandate from Malacañang to take the lead in actively promoting the use of alternative fuels in the country, PNOC-AFC is now talking with various investors for the plantation of biofuel feedstock and construction of biofuel refineries.

PNOC-AFC was established in July 2006.  Its primary mandate is to explore, develop and accelerate the utilization and commercialization of alternative fuels in the country. 

As a secondary mandate, PNOC-AFC shall also pursue the development, operation and management of a petrochemical industrial estate. 

The complex, located in Limay and Mariveles Bataan, covering approximately 530 hectares, is to be developed in phases.

According to Velasco, aside from the IPO plans, the aggressive promotion of alternative fuels development is also consistent with the company’s vision.

"We want to become one of the most prominent alternative energy-producing companies in the region," he said.