The initial public offering of Philadelphia Energy Solutions has stalled after the oil refiner backed by Carlyle Group LP postponed it last month, Chief Executive Officer Phil Rinaldi said in an interview on Wednesday.
Rinaldi does not expect the IPO to move forward any time soon, given the bearish market for oil, he said on the sidelines of the Shale Insight conference in Philadelphia. The possibility of never going public is also an option, he said.
The problems highlight investors' broad souring on the energy sector. Even though refining has remained a bright spot, with industry leaders like Valero Energy Corp and Tesoro Corp setting new share price records in the third quarter, investors have maintained a dim outlook for the sector as a whole.
"A lot of energy investors are bleeding right now, so it could take a while," Rinaldi said.
"With Goldman Sachs predicting $20 a barrel, that didn't help."
Energy investors in capital markets look at the whole industry, not just the refining segment, he said. Investors suffered when oil prices dropped more than 60 percent in a year, and they are looking for discounts on investments.
"If they want discounts, we're not selling," Rinaldi said.
Philadelphia Energy Solutions said on August 6 that it would postpone its IPO because of unfavourable market conditions. At the time, the company said it would continue to evaluate the timing for the proposed offering.
The offering included 15.2 million shares of common stock, with an expected price of $15 to $18 each.
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