MacroAsia eyes IPO for water business within three years
TYCOON Lucio C. Tan’s MacroAsia Corp. is planning to hold an initial public offering (IPO) for its water businesses within the next three years.
“Considering the opportunities, we envision to grow further our water business, with our mind set to eventually spin off and list this segment separately at the Philippine Stock Exchange within three years,” Lucio K. Tan, Jr., MacroAsia director, said at the company’s annual stockholders’ meeting last Friday.
MacroAsia Chief Financial Officer Amador T. Sendin told reporters the listing may happen even before 2022, as activities are now ongoing for the planned IPO.
“We’re currently transferring the holding of the shares. It’s currently under MacroAsia Properties Development Corp. We’re putting it under a water holding company. This one takes time,” he said.
MacroAsia Properties Development Corp. currently serves as the vehicle for MacroAsia Corp.’s water businesses, which covers the development and construction of water treatment facilities across the country.
Among its businesses are Naic Water Supply Corp. (NAWASCOR); SNV Resources Development Corp. (SNVRDC); Mabini Pangasinan Resources Development Corp. (MPRDC); Panay Water Business Resources, Inc. (PWBRI) and Watergy Business Solutions, Inc. (WBSI).
Also under MacroAsia’s water business are Cavite Business Resources, Inc. (CBRI); Boracay Tubi System, Inc. (BTSI); MONAD Water and Sewerage Systems, Inc. and New Earth Water System, Inc. (NEWS).
Mr. Sendin added the company is currently working on building the revenue and income base of its water businesses for the planned listing.
Last year, MacroAsia’s water segment booked a 90% increase in revenue to P271.04 million, driven by its acquisition of Summa Water Resources, Inc. and continuous revenue streams from water operations in Nueva Vizcaya, Cavite, Boracay, Bulacan, Albay and Iloilo. With the creation of a water spin-off, Mr. Sendin said MacroAsia can focus on its core businesses: the aviation and food segments.
“The intention of MacroAsia Corp. is to focus on its core. These are related to aviation services and at the same time the food side. The capital allocation policy for the water segment is currently different from the aviation services. It will help us if we can separate this, and that’s the logical reason for the separation,” he said. MacroAsia still largely depends on its in-flight catering business for revenues, as this segment accounted for 46% of the company’s total revenues last year at P1.66 billion. It also deals with ground-handling and aviation, which contributed 39% to MacroAsia’s total revenues last year at P1.46 billion.