OceanaGold Philippines Inc. (OGP) has successfully raised P6.08 billion from its initial public offering (IPO) of 456 million shares from April 29 to May 6.

However, during the listing of its shares on May 13, 2024, the prices of its stocks closed lower compared to its IPO price, or to P12.50 from P13.33. OGP shares opened slightly higher at P13.34 per shares.

Meanwhile, the Philippine Stock Exchange index (PSEi) started the week 1.14 percent higher at 6,604.25.

OGP, owned by Toronto-listed OceanaGold Corporation, is the operator of the Didipio gold-copper mine straddling the provinces of Nueva Vizcaya and Quirino. It was required to conduct the IPO under the terms of its mining permit.

The mining firm was originally targetting an IPO price of P17.28 per share to raise P7.6 billion. However, the company was forced to offer their shares at a discount because of “challenging” market conditions, analysts said.

OGP’s Didipio mine is the first mining project awarded a Financial or Technical Assistance Agreement (FTAA) by the Philippine government, allowing a 100-percent foreign-owned company to operate large-scale mining explorations in the country, the PSE said.

“The FTAA renewal is definitely a win-win situation for all stakeholders: OGP gets to continue its mining operations; the government continues to share in 60 percent of OGP’s net revenues; OGP continues to actively serve and support close to 60 barangays, providing much needed employment and supplier opportunities, farm to market roads, multi-purpose buildings, water systems, as well as health services and scholarship programs; and, of course, PSE adds a leading mining firm to its roster of publicly listed companies,” said PSE President and CEO Ramon S. Monzon in his welcome remarks during the OGP’s listing ceremony on May 13.

Monzon also cited OGP’s initiatives specific to responsible mining. “As part of OceanaGold Corporation, OGP adheres to its parent company’s approach to responsible mining, which is guided by an all-encompassing ‘Responsible Mining Framework.’”

The framework defines how Oceana Gold Corporation strives to operate every day, at every level of its business, to manage potential economic, environmental and social impacts and risks, while leveraging the potential to enhance the positive outcomes for all its stakeholders, the PSE said.

This is reflected in OGP’s commitment to sustainable practices, which includes reforestation and rehabilitation projects as well as using 100% recycled water in its processing plant.