Shares of gold miner OceanaGold Philippines Inc. (OGP.PS) ended 6.16% lower on its trading debut on Monday following a 6.078 billion pesos ($105.10 million) initial public offering (IPO). This marks the first IPO in the Philippines this year.
The shares opened at 13.34 pesos, slightly above their IPO price of 13.33 pesos, but subsequently lost ground, closing the day at 12.50 pesos per share.
The IPO saw Toronto-listed miner OceanaGold Corp. (OGC.TO) sell a 20% stake in its Philippine subsidiary, OceanaGold Philippines. This was the Philippines’ first public debut for a mining firm since 2012.
In a statement, OceanaGold Philippines President Joan Adaci-Cattiling said, “We expect our mining operations to provide substantial dividend returns to our shareholders.” She added that future dividends will be declared and paid to shareholders quarterly.
The Didipio mine operated by OceanaGold Philippines started commercial operations in 2013 and has a mine life of up to 2035. The IPO was required to comply with a regulatory requirement for the company’s operations in northern Philippines.
The Philippines is working to revitalize its mining sector to boost its economy. The country is a major nickel ore supplier to top metals consumer China and also has substantial copper and gold reserves.
Despite the weak debut, the IPO is seen as a positive step for the Philippine mining industry, which has struggled with regulatory challenges and public opposition in recent years.