PNOC-EC to sell shares to comply with 10% minimum public float

MANILA, Philippines - State-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC) will sell shares to increase its public float in December this year or January next year.

The company will seek the consideration of the Philippine Stock Exchange (PSE) to prevent possible penalties and trading suspensions, an official said.

“Our determination is definitely we will stay listed in the stock exchange,” said Silvestre Punsalan III, vice-president of PNOC-EC.

“The Department of Finance is with us in complying with the 10 percent [public float requirement],” Punsalan said.

Specifically, PNOC-EC is looking at selling shares on Dec. 10 or in the third week of January given thin trading in late in December and early in January Punsalan said.

The PSE gave companies a grace period of up to end-2012 to comply with the minimum 10-percent public float.

In May, PNOC-EC appointed Swiss banking giant UBS to sell roughly 218 million new shares to increase its public ownership.

To date, the firm has a public float of only 0.21 percent or 4.47 million shares .

Punsalan said PNOC-EC is completing its financial statements for January to September.

PNOC-EC will file its share sale plans to the PSE in the second week of October.

Punsalan said the coal producer will submit the share sale plan to show their willingness to comply with the public float rule.

However, PNOC-EC is in danger of being suspended from trading if it fails to sell shares in December.

Failure by companies to raise their public ownership until end-2012 will result in the suspension of trading.

Once trading is suspended, any transaction on stock trades will no longer enjoy the preferential tax rate of 0.5 percent. The Bureau of Internal Revenue will instead slap the five- to 10-percent capital gains tax on stock trades.

Punsalan said PNOC-EC will request for an extension without penalties or trading suspension.

PNOC-EC, which has a minority stake in the Malampaya gas-to-power project in Palawan, is into indigenous oil, gas and coal exploration and production.