OceanaGold Philippines is preparing for its initial public offering (IPO) next month. In a recent filing on Thursday, the company dismissed the petition, noting that it has not yet received an official copy.
Owned by Canada-listed OceanaGold Corp., the company operates the Didipio gold-copper mine in Nueva Vizcaya province in Luzon.
OceanaGold Philippines is set to become the country’s first IPO in 2024 and also the first listing of a mining company in a decade.
The timing of the filing of the legal case could dampen investors’ sentiment, hurting prospects of the upcoming share sale unless the company can provide assurances to investors.
OceanaGold Philippines previously aimed to raise P7.9 billion from the offer. The final amount is likely to be smaller after the company lowered the final price to P13.33 from the initial target of P17.28 apiece.
In a stock exchange filing on Thursday, the company noted that the “claims in the petition do not appear to have merit”.
“The company believes that all the required procedures for the renewal of its Financial or
Technical Assistance Agreement have been followed and it is in material compliance with all applicable environmental law,” it added.
Nevertheless, it plans to update its IPO prospectus to include the new case as a potential risk factor.
OceanaGold Philippines received on Thursday a Regional Trial Court order seeking a temporary environmental protection order against the firm. The court denied the prayer for a TPO but the case will proceed so each side can present evidence to support their positions.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
