Frontier Oil gets SEC approval for IPO
MANILA, Philippines -- Oil and gas firm Frontier Oil Corp.'s P2.21 billion initial public offering has been approved by the Securities and Exchange Commission en banc.
Frontier Oil will sell 883.626 million primary shares at P2.50 per share. The offer period is from November 25 to 29. The listing date is tentatively set on December 9.
Frontier Oil has tapped Philippine Commercial Capital Inc. and Unicapital Inc. as issue managers.
The company has said proceeds from the IPO will be used to finance the drilling of two service contracts -- SC 52, an onshore block in Cagayan Basin and SC 50 off Palawan.
"The company's two near-term projects, being the Nassipping Field is SC 52 and the Calauit Field in SC 50 have both been matured to a point of being production-ready with each having flowed gas and/or oil to surface as a consequence of previous drilling campaigns," Frontier Oil said.
"Bringing each of these two projects on stream and thereby providing Frontier Oil with its first revenues from oi/gas production is this offerings primary commercial proposition."
The company is targeting drilling operations in SC 52 in November, while drilling operations for SC 50 is slated for March 2014.
Frontier Oil is set to be the fifth IPO this quarter. Other companies preparing to go public this quarter are Travellers International Hotel Group Inc., Harbor Star Shipping Services Inc, Robinsons Retail Holdings Inc. and Concepcion Industries Inc.