Listed Phoenix Petroleum Philippines Inc. plans to sell 20 percent of its shares to strategic investors or financial partners to fund its aggressive expansion plans.
Phoenix president and chief executive Dennis Uy told reporters that the company was in talks with foreign and local partners.
“We plan to offer up to 20 percent. That’s on top of our public float. We are talking to a couple of interested investors or financial partners. That would be anytime next year,” Uy said.
Uy said the government-run Social Security System had the option to purchase up to 10 percent of the shares of the Davao-based company.
SSS earlier bought 2.83 percent of Phoenix for P42 million at P5.60 per share. Around 27 percent of the company’s shares are currently owned by the public.
Phoenix Petroleum Holdings Inc., the holding company, held 54.6 percent as of end-September.
Phoenix earlier said it was looking for potential strategic business partners and financial investors that could help the company in its bid to become the number one independent player in the retail fuel business.
“Phoenix is open to engaging prospective business partners who will participate meaningfully in our next stage of growth. The funding to be raised [from the investor] shall be used for additional working capital needed to support the expansion of our retail distribution network,” Francis Caluag, Phoenix chief financial officer, said.
Uy said the company planned to spend P500 million for capital expenditure next year. Phoenix plans to build more retail stations next year and strengthen its logistics operations around the country.
Uy said Phoenix would spend P200 million for the construction of 40 to 50 retail stations nationwide and P300 million for its depots and other logistics operations.
Uy said Phoenix would put up the additional stations mostly in Luzon and Mindanao.
Phoenix has around 97 stations in Mindanao alone. The company is focusing its expansion plans to the Luzon market and Mindanao market next year.
The company plans to have 120 stations by the end of the year.