The Market Monitor Minding the Nation's Business
By Riza Lozada
The price of freshly-listed Pilipinas Shell Petroleum Corp. shares closed strong on Friday, rising P2.50 to P69.50 each from its initial public offer (IPO) debut of P67 despite the market being at an oversold level.
The Philippine Stock Exchange index (PSEi) ended days of losses last Friday and gained 0.93 percent or 66.46 points to close at 7,227.37 points.The All Shares index rose 0.89 percent or 37.95 points to 4,325.72 points.
“Investors who wanted to buy Shell on its first day, were waiting for more favorable market condition before getting in thus it attracted fund flows as investors start to get in the market,” a broker said.
The company which has the stock symbol ‘SHLPH’ priced its offering at P67.00 per share when it listed.
“This particular market debut has actually been one of the most anticipated by market participants, and so it’s like a wish come true for many,” PSE chairman Jose Pardo said.
“This fund raising activity of Pilipinas Shell will surely help the company pursue its growth strategy and increase its market share,” Pardo added.
The SHLPH initial public offer last Thursday at the PSE was attended by both private and public government officials and regulators including SHLPH VP for Trading and Supply Dennis Gamab, SHLPH VP for Finance Jose Jerome Rivera Pascual III, SHLPH Independent Director Fernando Zobel de Ayala, PSPC Director Mona Lisa Bautista de la Cruz, SHLPH Independent Director Cesar Buenaventura, Department of Energy (DOE) Secretary Alfonso Cusi, SHLPH Outgoing Country Chairman Edgar O. Chua, SHLPH Country Chairman Cesar Romero, PSE Chairman Pardo, PSE Directors Ma. Vivian Yuchengco, Edgar G. Lacson, Emmanuel O. Bautista, PSE Treasurer Omelita J. Tiangco, PSE COO Roel A. Refran and PSE Director Alejandro T. Yu.
Energy Secretary Cusi, in his speech during the PSPC’s share debut, said “with the entry of PSPC to the growing list of companies whose stocks are traded in the PSE, the public is assured of yet another investment option. One that is of genuine value, born of sound corporate fundamentals, and hopefully, bound to perform as the public expects, that is, a highly sought-after blue-chip stock.”
“By its entry to the stock market, Pilipinas Shell subjects itself to state regulation and public scrutiny on another front—this time as a publicly listed company.
This means that it is all the more imperative for the company to constantly maintain not only an impeccable delivery of public service in the field of energy, but also sound corporate fiscal discipline and an attractive and wholesome corporate image in the community,” he said.