Marking the end of a more than ten-year hiatus in local mining IPOs, OceanaGold Philippines has unveiled plans to initiate an initial public offering (IPO), targeting a substantial Php 7.9 billion in funds by July this year.
Operating the Didipio gold-copper mine in Nueva Vizcaya province in Luzon, the domestic entity is a subsidiary of the Canada-listed OceanaGold Corp.,
The IPO filing following the renewal of its 25-year mining franchise in 2021.
In a report by the Philippine Daily Inquirer, the firm said it anticipates robust free cash flow, consistent dividend payments, and future potential, and also expressed pride in its mining operations and looks forward to welcoming new Filipino and international shareholders.
OceanaGold has enlisted BDO Capital & Investment Corp. as the global coordinator, domestic underwriter, and bookrunner for the IPO while CLSA Ltd. is set to play the international underwriter’s role, underlining the offering’s global scope.
Coal Asia was the last mining company to debut on the Philippine Stock Exchange in 2012, coinciding with the imposition of a ban on new mining projects by the late President Benigno Aquino III.
OceanaGold’s IPO entails the sale of 456 million common shares, representing 20 percent of the company, at a price of up to Php 17.28 per share. The offering, comprising secondary shares owned by a subsidiary of the foreign parent company, is scheduled to conclude before July 2024.
Luis Gerardo Limlingan, head of sales at Regina Capital Development, sees the fundraising initiative as a potential avenue for the group to expand operations at the Didipio project. He notes the gradual recovery of the equities market, anticipating favorable timing with projections of interest rates dropping, possibly resulting in a premium sale.
With the Marcos administration openly advocating for the revival of mining as an economic growth driver, the industry could witness additional support. Special Assistant to the President for Investment and Economic Affairs Frederick Go has recently advocated for expedited processing times to accelerate the exploration of new resources.
The Didipio project is expected to have a mine life of approximately 10 years, and the optimization work at Nueva Vizcaya shows potential for increased production of higher-grade ore and an extended mine life.
The company estimates that the additional life-of-mine growth capital for various development aspects will range between $100 million and $130 million.
OceanaGold remains optimistic about the Didipio project’s continued value creation for both the parent company and new OceanaGold Philippines shareholders.
