Uy opts for listing to raise funds
Businessman Dennis Uy revealed a plan to take more of his companies public to open up new funding avenues as his group continues its expansion.
Uy announced the plan late Tuesday as he told reporters this would also help map out the long-term strategy and sustainability of his group, under holding company Udenna Corp.
He said public listings would make it easier to tap new funding sources apart from increasing transparency.
“It will be more sustainable,” Uy said, adding that publicly traded companies could attract better talent and professionals.
The listing strategy appears consistent with steps taken by some of the country’s largest conglomerates. Uy said the decision reflected his optimism on the economy, as he cited tax reform and an upgrade this week by Fitch Ratings.
“The government is committed to infrastructure, so more infra [means] more demand for our sectors like petroleum, logistics and shipping,” he said.
Market observers noted that a prime listing candidate is Udenna, a play on his name. Udenna owns publicly traded subsidiaries such as Phoenix Petroleum Philippines, which went public in 2007, and Chelsea Logistics Holdings, which listed a decade later in August.
Fresh funds would be needed to support an expanding group that has been among the most active buyers in the country’s corporate scene in recent months.
In November, it announced the acquisition of a company that holds 177 hectares of land in Clark Freeport Zone, whose international airport the Duterte administration is expanding. In August, it announced a deal to buy the FamilyMart convenience store chain in the Philippines.
Other deals this year include a stake in listed logistics giant 2GO Group Inc., liquefied petroleum gas retailer Petronas Energy Philippines Inc. and Enderun Colleges Inc., which focuses on the hospitality and culinary sectors.
Udenna also started work this year on The Emerald Resort Hotel and Casino in Mactan Island, Cebu.
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