MANILA, Philippines - Trans-Asia Petroleum (Tapet), a unit of Trans-Asia Oil and Energy Development Corp. made its debut yesterday at the local stock market by way of introduction.
Trans-Asia Oil is the power generation company of the Phinma Group.
“By this venture into the capital market, we will be able to achieve flexibility in meeting investment opportunities and operational commitments of the company, especially if exploratory activities result in confirmed reserves and high potential for commercial operations,” said Tapet vice-chairman Oscar Hilado during the listing ceremonies.
Tapet listed 250 million shares at P4.50 per piece. Listing by way of introduction involves no immediate sale of shares unlike an initial public offering.
The company is also pushing through with a planned rights offering, proceeds of which would be used to bankroll new and existing power projects, said Trans-Asia oil chief finance officer Phytagoras Brion Jr.
“We are planning to have this at the end of the year, a rights offering of around P500 million,” he said.
He said the exact timing is being finalized as it may also happen in early 2015. Proceeds would be used to fund projects such as Service Contract 50 and Service Contract 52.
During yesterday’s listing, Hilado said Trans-Asia continually seeks investment opportunities to expand the company’s power and energy resource portfolio to support its growth strategy.
Hilado highlighted Tapet’s strength such as its participating interest in SC 55 in offshore Palawan.
“With SC 55, we continue to remain confident in the prospectivity of the area with significant potential reserves of oil and natural gas,” Hilado said.
Furthermore, he said the company is supported by its minority interests in a number of service contracts including SC 51 East Visayas, SC 69 Camotes Sea, SC 6 Block A and B.
“These interests present opportunities to and have attracted farm-in interest from other foreign oil companies,” Hilado said.
On Wednesday, the company also announced that it has acquired a minority interest in SC 50, an oil development projected located in offshore North Palawan.
“Through this participation, the company expects to generate near-term recurring petroleum revenues,” Hilado said.