TVI Pacific Inc. of Canada said it may pursue a planned P1.51-billion initial public offering for local unit TVI Resources Development Corp. in the second half of 2016.
TVI Pacific said in a recent corporate presentation the Philippine IPO would give the company an opportunity to raise funds to finance acquisition and development activities.
“The PSE (Philippine Stock Exchange) listing will allow TVI Pacific to monetize portions of its TVIRD holdings which will represent an ongoing source of non-dilutive funding during a time when capital is difficult to raise for new project acquisition and development activities,” TVIRD said.
The listing will also significantly enhance TVI Pacific’s investment value. TVI Pacific holds a 30.66-percent interest in TVIRD.
TVIRD originally planned to hold its maiden share offering in 2015. The company decided to defer it to 2016 because of the delay in securing regulatory approvals and volatile market conditions.
Latest preliminary registration statement filed with the Securities and Exchange Commission showed that TVIRD planned to sell 408 million shares consisting of 272.02 million in primary shares and 136 million in secondary shares at an offering price of up to P3.71 apiece.
The shares represent 15 percent of the outstanding common stocks of the company after the IPO.
The company plans to use proceeds from the fund raising activity to finance certain capital expenditures, inlcuding the construction, development and operation of TVIRD’s Balabag Gold-Silver Project in Zamboanga del Sur.
BDO Capital & Investment Corp. is the underwriter for TVIRD’s IPO.
TVIRD owns a 100-percent interest in a mineral production sharing agreement covering 4,779 hectares on the Balabag gold and silver project in Canatuan, Zamboanga del Sur.
It also owns a 60-percent stake in a joint venture company that operates a nickel mine in Tubay, Agusan del Norte.
Meanwhile, TVI Pacific said TVIRD was considering the acquiisition or formation of joint ventures on resource deposits that may have a modest initial resource size but with the potential for significant resource growth.