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Press Release: October 17, 2007

SEC APPROVES PETROLIFT CAPITALIZATION HIKE
 

The Securities and Exchange Commission (SEC) has approved Petrolift Inc.’s application to increase its capital.

In a statement, Petrolift said the SEC has given the go signal to the company for its planned hike in capital from P400 million to P2.1 billion, with the P1.7 billion-increase consisting of 1.7 billion shares with a par value of P1 each. The company has also reduced the par value of their shares to P1 from P100.

Petrolift Inc. President Lawrence Leonio said that the SEC approval will pave the way for the company’s plans to raise more funds for its expansion.

The country’s leading oil and gas tankering company, Petrolift Inc., filed an application to the SEC as well as to the Philippine Stock Exchange to raise as much as P3.5 billion via initial public offering (IPO).  Petrolift registered 456.75 million shares to be sold at a maximum offer price of P7.65 each.

BDO Capital and Investment Corp. has been tapped as the issue manager and lead underwriter for the planned IPO.

Proceeds from the IPO will be used by the company to acquire more double-hulled tanker vessels, convert existing tankers to double hull and acquire dry bulk carriers and heavy equipment for mining logistics. 

The company expects a sharp rise in demand of oil tankering and logistics services within a year as the government is set to implement Memorandum Circular 2007-001, which mandates that all fuel oil tankers be double hulled by April 2008.  Compared to single-hulled tankers, double-hulled vessels provide an added layer of protection to help maintain cargo integrity by minimizing the risk of spillage and associated marine pollution in the event of an accident.

Moreover, the direction of the international maritime community and the major oil companies is to also initiate a phase out of single hull tankers carrying refined petroleum products by 2010.

“The tankering and logistics industry will experience a major transformation next year and Petrolift will lead that change through the company’s acquisitions and expansion into other viable markets,” Leonio said.

Currently, Petrolift has the largest capacity of double hull compliant tankers in the country, which acquired three double hull vessels in the last 12 months.

 

Reference:
James Almeda
OutsourcePR
opraccts@pldtdsl.net
811.3051

 
   
 
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