Tollway division prepares for IPO, Metro Pacific aims to top 2019 feat


Rogelio Hinson — file photo

Rogelio Hinson — file photo

MANILA – Metro Pacific Investments Corp.'s toll road unit plans to launch an initial public offering (IPO) as early as 2024 to support new projects and reduce debt.

Metro Pacific Tollways plans an initial public offering on the Philippine Stock Exchange as part of the Manuel V. Pangilinan-led group’s goal to list its units after completing its ongoing P55 billion privatization effort.

Metro Pacific Tollways owns toll roads such as the North Luzon Expressway, Subic-Clark Expressway, and Cavite-Laguna Expressway. CEO Rogelio Singson said the deal valuation has not yet been finalized, but noted that the proceeds will be used to reduce debt of about 140 billion pesos.

“We hope to raise funds to repay most of the loans,” he told a media briefing on Monday.

Hinson said they are continuing to complete construction of the existing pipeline despite delays caused by a lack of right-of-way. New projects also include the construction of a large joint venture highway with San Miguel Corp. to connect the provinces of Batangas and Cavite.

Meanwhile, Maynilad Water Services Inc. Chief Executive Ramoncito Fernandez told a briefing that the company could go public in 2025, two years ahead of the deadline required for its franchise.

Metro Pacific also owns significant stakes in Manila Electric Co., Light Rail Transit Line 1 and several private hospitals across the country. Profit in the first quarter of 2023 surged 33% to P9.9 billion, and is expected to exceed pre-pandemic profits.

Metro Pacific Chief Financial Officer June Cheryl Cabal-Revilla said they are likely to exceed their full-year core revenue target of P16.1 billion. The company's core profit hit a record high in 2019, reaching P15.6 billion.

Metro Pacific's board of directors on Monday decided to pay an interim dividend of P0.05 per share on September 15, 2023 to shareholders of record as of September 1.

“Our continued strong performance reflects significant volume growth in our core businesses of electric power, toll roads and water, driven by favorable tariff adjustments,” Metro Pacific Chairman and Chief Executive Officer Manuel V. Pangilinan said in a statement Monday. and savings from operating efficiencies.

“We are also realizing the results of strategic investments in our power generation business, which we expect will continue to be a driver of future growth,” he added.


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