METRO PACIFIC AIMING TO BEAT 2019 FEAT AS TOLL ROAD UNIT GEARS UP FOR IPO
The toll road arm of Metro Pacific Investments Corp. is looking to launch its initial public offering (IPO) as early as 2024 to support new projects and lower debts.
Metro Pacific Tollways’ planned IPO in the Philippine Stock Exchange is part of the Manuel V. Pangilinan-led conglomerate’s goal to list individual units after completing an ongoing P55-billion privatization effort.
Metro Pacific Tollways owns North Luzon Expressway, Subic Clark Expressway, Cavite Laguna Expressway and other toll roads. Company CEO Rogelio Singson said the deal valuation has yet to be finalized but he noted proceeds would be used to lower debts of about P140 billion.
“We want to raise funds to pay off a substantial portion of our loans,” he said during a media briefing on Monday.
Singson said they were moving to complete their existing pipeline despite delays caused by the lack of right-of-way. New projects also include a massive
new joint venture expressway with conglomerate San Miguel Corp. to link the provinces of Batangas and Cavite.
Meanwhile, Ramoncito Fernandez, CEO of Maynilad Water Services Inc., said during the briefing the company could go public by 2025, which was two years ahead of the deadline required under its franchise.
Metro Pacific also owns substantial stakes in Manila Electric Co., the Light Rail Transit Line 1 and several private hospitals across the country. It is poised to beat prepandemic earnings after profits in the first semester of 2023 surged 33 percent to P9.9 billion.
June Cheryl Cabal-Revilla, chief finance officer of Metro Pacific, said they would likely exceed their full-year core income target of P16.1 billion. The company booked a record high core profit of P15.6 billion in 2019.
Metro Pacific’s board on Monday decided an interim dividend of P0.05 per share payable on Sept. 15, 2023 to stockholders of record as of Sept. 1.
“Our consistently strong performance reflects significant volume increases for our core businesses on power, toll roads and water, bolstered by favorable tariff adjustments and savings resulting from operational efficiencies,” Metro Pacific chair and CEO Manuel V. Pangilinan said in a statement on Monday.
“We are also realizing the fruits of strategic investments in the power generation business, and we expect this to continue to be a driver of growth in the future,” he added.