OceanaGold Philippines, a wholly-owned subsidiary of Canada-listed OceanaGold Corporation, has filed with the Philippine Securities and Exchange Commission (SEC) to raise up to 7.9 billion pesos ($141 million) in an initial public offering (IPO) in the country.
The company, which operates the Didipio gold and copper mine in the Nueva Vizcaya province of The Philippines, plans to offer up to 456 million common shares, representing 20% of its total shares, at 17.28 pesos apiece, OceanaGold said in a statement.
The offering, which is led by BDO Capital & Investment Corporation, is expected to be completed before July 2024, subject to receipt of regulatory approvals, operating performance, and market conditions.
“We look forward to welcoming new Filipino and international shareholders to participate in the expected robust free cash flow generation, consistent dividend payments, and future potential at Didipio,” said OceanaGold president and CEO Gerard Bond.
Proceeds from the IPO will primarily fund underground optimisation and further exploration at the Didipio mine, which has reserves of 1.1 million ounces of gold and 140,000 tonnes of copper as of end-2023.
OceanaGold said the Didipio project has an estimated mine life of about 10 years. The ongoing underground “optimisation work” at the mine has the potential to increase production of larger volumes of higher-grade ore and an increase in the mine life, the company said.
“We believe that the future at Didipio is bright and look forward to it continuing to create value for both OceanaGold and our new OGPI shareholders,” Bond added.
The filing comes as the Philippine Stock Exchange (PSE) earlier forecast that IPOs in the country will double this year after a weak 2023. The PSE expects six IPOs this year, up from just three in 2023.
Last month, the local SEC approved the 12.9 billion pesos listing of Citicore Renewable Energy, which could become the country’s first IPO this year. Citicore seeks to offer 10.04 billion common shares.