Cebu-based Aznar Shipping Corporation is proceeding with its planned initial public offering (IPO) in December, seeking to raise as much as ₱737 million despite the expected market debut of fintech company Mynt Inc.
Aznar Shipping President and Chief Executive Officer Kyle Alexander Aznar said the company plans to offer up to 1.1 billion common shares, consisting of one billion primary shares and as many as 100 million additional shares through an over-allotment option.
The shares will have an indicative maximum offer price of P0.67 each.
Under the proposed timetable, the offer period is scheduled from December 1 to 8, followed by a tentative listing on December 18 on the Small, Medium and Emerging Board of the Philippine Stock Exchange under the ticker ALX.
Aznar said the company is confident that its focus on inter-island shipping gives it a distinct market position and should allow it to attract investors even with Mynt’s highly anticipated IPO.
“I’m not really concerned since it’s a different industry,” Aznar said in a media briefing.
“GCash is a fintech. We’re a logistics company, a service company. We serve essential needs recurring demand. Especially in the Visayas, you cannot really make do without sea transport because all the islands are separated by the sea,” he added.
The company expects to generate up to ₱670 million from the primary share offering. The funds will be used to purchase vessels classified by the International Association of Classification Societies and establish a dedicated dry-docking facility designed to enhance fleet maintenance and reduce vessel turnaround times.
Meanwhile, up to P67 million from the secondary share sale will go to the selling shareholders.
The planned capital raising follows a significant improvement in Aznar Shipping’s financial results during the first half of the year.
The company recorded net income of ₱53.19 million, up 155% from ₱20.85 million during the same period last year. Revenues likewise more than doubled to ₱210.99 million from ₱100.59 million.
Earnings before interest, taxes, depreciation and amortization rose 97% to ₱103.12 million.
Cargo and vehicle transportation provided the bulk of the company’s revenue, accounting for 86% of the total following the addition of two vessels, MV Manoling 6 and MV Alexander 1.
Aznar Shipping currently operates nine vessels across eight ports, connecting major destinations in the Visayas, including Cebu, Negros, Leyte and Bantayan Island.
Investment & Capital Corporation of the Philippines and PNB Capital and Investment Corporation are serving as joint issue managers, joint lead underwriters and joint bookrunners for the planned IPO.