The Securities and Exchange Commission (SEC) has approved Petrolift Inc.’s increase in capitalization from P400 million to P2.1 billion.
Lawrence Leonio, president of Petrolift, said the SEC approval will allow the company to raise more funds for its expansion program.
Petrolift has applied for an initial public offering (IPO) of 456.75 million shares to raise as much as P3.5 billion. The shares will be sold at a maximum price of P7.65 each.
BDO Capital and Investment Corp. is the issue manager and lead underwriter for the planned share issue.
Proceeds from the IPO will be used to acquire more double-hulled tanker vessels, convert existing tankers to double hull and acquire dry bulk carriers and heavy equipment for mining logistics.
The IPO is also in preparation for the impending implementation of an International Marine Organization (IMO) regulation accelerating the shift to double-hull ships from single-hull by 2008 for fuel. Compared to single-hulled tankers, double-hulled vessels provide an added layer of protection to help maintain cargo integrity by minimizing the risk of spillage and associated marine pollution in the event of an accident.
“The tankering and logistics industry will experience a major transformation next year and Petrolift will lead that change through the company’s acquisitions and expansion into other viable markets,” Leonio said.