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Cebu-based carrier Aznar Shipping Corp. is aiming to raise up to P737 million through an initial public offering in December
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Funds intended to support ongoing fleet and network expansion as well as for shipyard development
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Indicative price is up to P0.67 per share
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Offer period is planned for December 1 to 8, with the listing on December 18 on the Philippine Stock Exchange’s Small, Medium and Emerging Board under the trading symbol “ALX”
Cebu-based carrier Aznar Shipping Corp. (ASC) is aiming to raise up to P737 million through an initial public offering (IPO) in December, with the funds intended to support its ongoing fleet and network expansion as well as for shipyard development.
The offer period is planned for December 1 to 8, with the listing on December 18 on the Philippine Stock Exchange’s (PSE) Small, Medium and Emerging Board under the trading symbol “ALX”, the company announced in a statement.
“Aznar Shipping’s IPO gives investors an opportunity to participate in the growth of the Visayas through an expanding inter-island shipping platform that supports trade, tourism, and everyday mobility across the region’s key growth centers,” ASC president and chief executive Kyle Alexander Aznar said.
The company filed a registration statement with the Securities and Exchange Commission for up to 1 billion primary common shares, with an over-allotment option of up to 100 million secondary shares.
It set an indicative price of up to P0.67 per share, subject to subject to a book-building process and regulatory approvals. Aznar Shipping is enrolled in the PSE’s Listing Engagement and Assistance Program (LEAP), which provides potential listing applicants with a one-stop shop for guidance and support throughout the listing process.
“The additional capital will help us strengthen our fleet and supporting capabilities so we can connect more growth centers and provide the maritime capacity needed to move more passengers, vehicles, and cargoes,” Aznar said.
ASC operates a short-haul, high-frequency shipping model with nine operating vessels focused on four major inter-island routes with regular calls at eight ports across the Visayas.
The Company’s expansion strategy is anchored on increasing vessel capacity, developing additional viable routes, and strengthening the supporting capabilities needed to operate a larger regional shipping platform.
Aznar said in June that in the next three to five years, ASC plans to add three more International Association of Classification Societies (IACS)-classed roll-on/roll-off ferries as part of its fleet expansion and modernization program while eyeing more routes in the country’s central islands.
READ: Aznar Shipping gets pioneer status on Danao-Isabel route, eyes fleet expansion
Citing a study by the Center for Research and Communication, ASC said Visayas ports accounted for about 35% of national cargo throughput, 60% of passenger traffic, and 49% of roll-on/roll-off vehicle movements over the period 2022 to 2025.
ASC is also eyeing to put up its own shipyard facility once it fleet reaches a number that would make it more efficient for its drydocking requirements, and eventually provide related service to other carriers.
The company has engaged Investment & Capital Corporation of the Philippines and PNB Capital and Investment Corporation as Joint Issue Managers, Joint Lead Underwriters, and Joint Bookrunners for the transaction.
Aznar Shipping is enrolled in the PSE’s Listing Engagement and Assistance Program (LEAP), which provides potential listing applicants with a one-stop shop for guidance and support throughout the listing process.
