DOE to review long-delayed Shell IPO

MANILA, Philippines - The Department of Energy (DOE) will look into the long-delayed initial public offering (IPO) of oil refiner Pilipinas Shell Petroleum Corp., a top official said yesterday.

The new review comes on the heels of recent record-setting finishes at the Philippine Stock Exchange (PSE).

“We will revisit the matter. Historically, there have been instances that [the IPO] was proposed but the conditions were not ripe,” said DOE Undersecretary Jose M. Layug Jr.

“We will revisit those conditions now whether it is viable,” he added.

The PSE index (PSEi), a basket of 30 prime stocks regarded as the benchmark of the market’s overall performance, closed at a new all-time of 4,943.84 on Feb. 20 as investors cheered the policy easing in China while expecting a fresh bailout for debt-ridden Greece.

The PSEi has already breached its all-time high level several times this year.

Layug said the DOE will again study the Department of Justice (DOJ) opinion for Shell’s IPO.

The DOJ earlier said the three-year period for listing is not mandatory but prescriptive.

Under the Downstream Oil Industry Deregulation Act of 1998, oil refiners should offer at least 10 percent of their shares to the public three years after the law’s passage.

But over the past years, Shell has been deferring its IPO, noting that market conditions are not conducive yet for a public offer.