PNOC-EC to comply with 10% rule

MANILA, Philippines - PNOC-Exploration Corp. said it would stay listed and is in the final stage of appointing a financial advisor to help draw up plans to boost its public float.

In a disclosure to thePhilippine Stock Exchange (PSE) yesterday, PNOC-EC, which has been listed sine 1977, has committed to comply with the 10-percent minimum public ownership rule of the PSE.

“It will take four months to go through the valuation and book-building process,” PNOC-EC said.

The government owns 99.78 percent of PNOC-EC’s shares through state-owned Philippine National Oil Co., thus falling below the required 10-percent minimum public float.

The PSE has given delinquent firms until the end of the year to raise their public float or face suspension and eventually be removed from the roster of listed stocks.

According to PNOC-EC, the Department of Finance would determine the actual timing and actual selling of the PNOC-EC shares.

“We have a clear understanding with the Finance Department that PNOC-EC shares will only push through if the valuation of the shares will be advantageous to the government,” PNOC-EC pointed out.

PNOC-EC shortlisted last year three firms to serve as its financial advisor, underwriter and global coordinator for its planned additional public offering. The three are UBS Investments Philippines Inc., Deutsche Bank, and a group comprising Citigroup Global Markets, Citicorp Capital Philippines Inc. and ATR Kim Eng Capital Partners Inc.