Aznar Shipping eyes December PSE debut
MANILA, Philippines — Cebu-based Aznar Shipping Corp. is seeking to raise P737 million through an initial public offering (IPO) to expand its fleet and shipping operations across the Visayas.
The shipping operator has filed a registration statement with the SEC to sell up to 1 billion primary common shares, plus an option for 100 million secondary shares.
READ: Aznar Shipping readies purchase of 3 ships from China
Meanwhile, the company plans to schedule the offer period from Dec. 1 to 8, pending regulatory approvals and market conditions.
Likewise, Aznar Shipping is targeting a Dec. 18 listing on the Philippine Stock Exchange’s small, medium and emerging board under the ticker “ALX.” The company will offer shares at an indicative price of up to P0.67, pending a book-building process.
At the maximum price, Aznar Shipping expects to generate up to P670 million in gross proceeds from the primary offer.
Moreoer, the overallotment option could bring in another P67 million if fully exercised.
Proceeds from the primary offer will finance fleet expansion, shipyard development, and general corporate purposes.
Still, the company aims to increase capacity and expand its footprint in the Visayas through these investments.
Aznar Shipping currently operates nine vessels under a short-haul, high-frequency model. Its four major inter-island routes make regular calls at eight Visayan ports.
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The company is positioning its expansion against growing maritime activity in the region.
Furthermore, Aznar Shipping stated that Visayas ports represented 35% of national cargo throughput, 60% of passenger traffic, and 49% of roll-on/roll-off (RoRo) vehicle movements from 2022 to 2025, according to a study.
At the same time, the region also accounted for more than half of total ship calls nationwide.
On the other hand, the Visayas RoRo traffic will likely grow by an average of 12.9 percent through 2028, exceeding the nationwide growth projection of 10.7 percent.
“As economic activity across the Visayas continues to grow, we want Aznar Shipping to grow with the region,” Aznar Shipping president and CEO Kyle Alexander C. Aznar said.
Investment & Capital Corporation of the Philippines and PNB Capital and Investment Corporation are serving as joint issue managers, joint lead underwriters, and joint bookrunners. /pai
