OceanaGold Corp., the mother unit of Oceana Gold Philippines Inc. (OGPI), confirmed Thursday that it plans to raise P6.08 billion from an initial public offering (IPO) of 20 percent of the common shares of its wholly-owned Philippine subsidiary.
The company, as stipulated by the renewed financial and technical assistance agreement (FTAA), needs to list its common stock on the PSE to maintain its control over the Didipio Mine via OGPI.
The IPO is a secondary offering of common shares, with proceeds to be received by OGPI.
The final offering price will be P13.33 per share, as determined by the market through a book-building process involving international and Philippines institutional investors.
The retail offer period will run from April 29, 2024 to May 6, 2024, with listing of OGPI on the PSE expected on May 13, 2024.
Funds raised from the IPO, after accounting for fees and taxes, are expected to be used to pay down debts. OceanaGold’s existing bank debt was at $135 million as of Dec. 31, 2023.
OceanaGold has provided preliminary first-quarter 2024 operating results for the Didipio mine for inclusion in the prospectus for the offering.
OGPI’s Didipio mine produced 26,312 ounces of gold and 3,015 metric tons (MT) of copper for the quarter ending March 31, 2024, in-line with its full-year plan and 2024 guidance.
Gold sales in the quarter totaled 31,863 ounces of gold and 3,180 MT of copper.