Philippines: Phoenix to Issue 20% Shares to Fund Expansion

Proceeds from the proposed additional listing will be used for additional working capital to support Phoenix’s retail expansion. Phoenix ended 2008 with 86 refueling service stations and now has  a network of 112 service station outlets, of which the majority are located in southern Philippines.

Dennis Uy, Phoenix president and chief executive, said that they are currently in talks with prospective foreign and local firms for the possible sale of 20 percent of the oil company’s outstanding shares.  Dennis Uy said the company would need around P500 million to strengthen its logistics operations and to construct 40 to 50 retail service stations across the country.

Phoenix Petroleum is engaged in the business of trading refined petroleum products, lubricants, chemicals and an array of car care products and accessories. It also provides services such as depot operation, depot storage, logistics, into-plane and allied services.  The company has also been planning to expand in Luzon where it has already acquired an industrial park with a full-sized port and a depot with a storage capacity of 50 million liters.  It was listed on the Philippine Stock Exchange in July 2007 when 27 percent of its shares were offered to the public for the first time.

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