“We hope that Shell will stay listed, for the sake of its minority shareholders, especially those who bought into the company’s initial public offering (IPO),” Surigao del Sur Rep. Johnny Pimentel said in a statement Monday.
The Government Service Insurance System owns 15.82 million shares in Pilipinas Shell, while the Social Security System holds another 7.764 million shares, Pimentel said.
Pilipinas Shell sold 291 million shares to the public at P67 per share in 2016, in compliance with Republic Act 8479 or the Downstream Oil Industry Regulation Law of 1998.
The law required any entity engaged in the oil refinery business to make a public offering of at least 10 percent of its common stock within three years from the effectivity of the law.
“Shell’s case is different because it was compelled by law to go public. It did not voluntarily conduct an IPO,” Pimentel pointed out.
“In fact, we recall that Shell dillydallied about going public and managed to defer its IPO for 14 years only because Congress did not specify a penalty if oil refiners failed to go public within the prescribed deadline,” Pimentel said.
Last August, Pilipinas Shell closed down for good its 58-year-old refinery and converted it into an oil import terminal.