OceanaGold IPO price set

MANILA, Philippines — OceanaGold (Philippines) Inc. (OGPI), the operator of Didipio gold and copper mine in Nueva Vizcaya, pegged its initial public offering (IPO) price at P13.33 per share, more than a fifth lower than its earlier announced maximum price of P17.28 per share.

OGPI made the formal notice to the Philippine Stock Exchange (PSE) yesterday regarding the final price for its IPO slated on May 13.

With the reduction in anticipated IPO price, OGPI is set to raise a maximum of P6.08 billion versus the earlier estimated P7.88 billion maximum fund raising.

OGPI is a wholly owned subsidiary of Australian-Canadian firm OceanaGold Corp.

OceanaGold is selling its 20 percent stake in OGPI or about 456 million common shares.

The amount is double the minimum 10 percent common share required under its renewed 25-year Financial or Technical Assistance Agreement (FTAA) with the government.

OGPI has tapped BDO Capital and Investment Corp. as its global coordinator and domestic underwriter and bookrunner, while CLSA Ltd. will serve as its international underwriter.

According to OceanaGold, the proceeds from the IPO of OGPI will be used to repay its debt that stood at $135 million at the end of 2023.

OceanaGold earlier said its Didipio mine is on track to hit its 2024 production guidance after producing over 26,000 ounces of gold and 3,000 metric tons of copper in the first quarter.

Meanwhile, a lower court yesterday denied the temporary environment protection order (TEPO) petition against the mining operations of OGPI in Nueva Vizcaya due to lack of basis.

Nueva Vizcaya Regional Trial Court Branch 30 executive presiding judge Paul Attolba Jr. on April 24 did not grant the petition for TEPO against OGPI on the basis that the firm’s mining operations do not have immediate or irreparable harm to the environment.

Attolba said the court found that the petition contained “mere allegations that must be threshed out in a full blown trial.”

“(The court) is not convinced at this point that there is an immediate or irreparable harm to the environment to justify the issuance of a TEPO especially so that the petition is not supported by clear and convincing evidence to enable the court to make an intelligent finding as to whether or not to issue the said protection order,” Attolba said in his order.

Attolba said the court could not issue a ruling against OGPI without clear evidence since the respondents have rights as well protected by the law.