Chevron refining unit planning B15.6bn IPO

Chevron refining unit planning B15.6bn IPO

Star Petroleum Refining Plc, the Thai refining unit of Chevron Corp, plans an initial public offering of as much as 15.6 billion baht to repay some loans and fulfil its obligation to the government for a stock listing.

Star Petroleum, owned 64% by Chevron at present, will raise about 3.1 billion baht from the sale of 345 million new shares at 9 baht each in the offering, it said in a filing with the nation's Securities & Exchange Commission on Monday. PTT Plc, the state-owned energy company, will offload its 36% stake, amounting to another 1.39 billion existing shares, at the same price to raise 12.5 billion baht, according to the statement.

Star Petroleum is the only unlisted Thai refiner that is majority owned by a foreign company, and the IPO will help it meet the condition under which it received the government's licence. Its listing plan has been delayed since at least 2006 amid military coups and oil-price fluctuations.

The IPO, which includes an offer of 1.02 billion shares to local investors and 712 million shares to international subscribers, will dilute Chevron's stake in the company to 57.4%. Chevron reserves the right to sell an additional 173.5 million shares in Star Petroleum if investor demand exceeds the current allocation, it said.

Star Petroleum will use about 1.91 billion baht from its sale of new shares to repay existing loans, according to the filing. The share offering will open for subscription between Nov. 23 and Dec 1.

Merrill Lynch and Morgan Stanley will manage international offering, while Phatra Securities Plc, Bualuang Securities Plc, Finansa Securities Ltd and Siam Commercial Bank Plc will advise on the domestic sale.

Among Thai refining units of foreign companies, Esso (Thailand) Plc, a unit of Exxon Mobil Corp, listed its shares in 2008. Rayong Refinery Plc, a refinery in which PTT acquired majority control from Royal Dutch Shell Plc in 2004, was listed in 2006.

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