Shares of OceanaGold Philippines Inc ended 6.16% lower on its trading debut on Monday after a 6.078 billion pesos ($105.10 million) initial public offering (IPO), the first IPO in the Philippines’ this year.
The shares opened at 13.34 pesos, a touch above their IPO price of 13.33 pesos, but subsequently lost ground to cap the day at 12.50 pesos each.
Toronto-listed miner OceanaGold Corp sold 20% in subsidiary OceanaGold Philippines via the IPO, the Philippines’ first public debut for a mining firm since 2012.
“We expect our mining operations to provide substantial dividend returns to our shareholders,” OceanaGold Philippines President Joan Adaci-Cattiling said in a statement.
Future dividends will be declared and paid to shareholders quarterly, she added.
The gold and copper miner’s IPO was to comply with a regulatory requirement for its operations in northern Philippines. Its Didipio mine started commercial operations in 2013 and has a mine life of up to 2035.
The Philippines is working to revitalize its mining sector to boost its economy. It is a major nickel ore supplier to top metals consumer China, and also has substantial copper and gold reserves.
($1 = 57.83 Philippine pesos)
(Reporting by Neil Jerome Morales; Editing by John Mair, Martin Petty)
