MANILA, June 2 (Reuters) - Pilipinas Shell Petroleum Corp, a unit of Royal Dutch Shell Plc, has hired BPI Capital Corp and JP Morgan for a domestic initial public offering, IFR reported on Thursday, citing two sources close to the transaction.

The size and timing of the offer will be finalised soon, according to IFR, a Thomson Reuters publication.

Banks had pitched the deal at a valuation of $3 billion to $5 billion, IFR said, indicating Pilipinas Shell could raise $300 million to $500 million by selling the required minimum offer of 10 percent.

Pilipinas Shell, which operates one of the country’s two refineries, is required under a near two-decade-old local law to offer at least 10 percent equity to the public.

In March Shell’s local chairman, Edgar Chua, said the target was to launch the IPO within the second half of the year and that the size could be bigger than 10 percent. (Reporting by S. Anuradha of IFR in Singapore; Writing by Enrico dela Cruz; Editing by Tom Hogue)