Petrolift IPO gets green light

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THE Philippine Stock Exchange (PSE) has approved the proposed initial public offering (IPO) of Petrolift next month to support the company’s tanker refleeting program.

Petrolift expects to generate up to P5.4 billion from selling as much as 713 million common shares at P4.90 to P7.65 per share. The company has set aside an additional 97.7 million secondary shares to cover overallotments.

With the fresh funds, Petrolift plans to upgrade its fleet to double-hull tankers, acquiring these from Japan, China, Korea, Norway, and Singapore, among other countries.

Formerly called Petrolift Classed Carriers Inc, the firm is engaged in bulk logistics for the mining and other allied marine services. Its principal owners are the Leonio family who has been engaged in deep sea fishing, shipyard operations, shipping, ports and the terminal businesses for four generations.

The company expects a rise in demand for oil tankers and logistics services within a year with the government requirement for the use of double-hulled fuel oil tankers by April 2008.

Compared with single-hulled tankers, double-hulled vessels provide an added layer of protection to help maintain cargo integrity by minimizing the risk of spillage and associated marine pollution in the event of an accident.