From no plan to IPO-ready: Aznar Shipping prepares to sail rough seas

Notes on the beat

MANILA, Philippines — Aznar Shipping Corp. president and CEO Kyle Alexander Aznar said in June that the company had no immediate plan to go public yet, although he emphasized that it aimed to be IPO-ready.

Three months later, the company announced that it is ready to sail with a P737-million initial public offering targeted by December.

“We decided over the time period that this is the time to expand, especially when our first half 2026 figures came out. We saw that the revenue was very promising. We did better than last year despite the economic uncertainty,” Aznar said when asked by The STAR what changed during that time frame that made them decide to pursue a maiden public offering. 

“That’s when we realized that for our sector, the market is there, the demand is there. So that is when we decided that OK, it’s time to expand,” he added.

Aznar Shipping, which aims to list on the small, medium and emerging board of the Philippine Stock Exchange Inc. under the trading symbol “ALX,” is eyeing to debut in the market despite a challenging environment.

Aznar acknowledged that even if current market conditions are uncertain, he is confident in the company’s good story, fundamentals and business model. 

“For me, market conditions, they’re out of our control. They’re just like the sea. You can’t always hope for calm waters. What you can do is really learn to sail in rough conditions,” he said. 

“What is in our control is really how we operate, how we run the company. And for me, I believe in our business model. I believe in our market. I believe that the fundamentals are there to help us grow. And right now, I think it’s the right time,” Aznar said.

Aznar Shipping’s potential IPO by the end of the year will also come on the heels of what could be the biggest IPO in the country, which is Mynt Inc.’s blockbuster listing in October.  

Asked if he is confident that there will still be enough investor appetite in the market following the GCash IPO, Aznar said: “I’m not concerned because it’s a different industry. It’s so far from us.  GCash is fintech, we’re a logistics company.”

Aznar Shipping operates a short-haul, high-frequency shipping model with nine operating vessels focused on four major inter-island routes with regular port calls at eight ports across the Visayas. 

The Cebu-based shipping operator’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.

For the first half, the company reported a 155-percent surge in net income to P53.19 million. Its revenues soared by 110 percent year-on-year to P210.99 million on the back of additional vessel capacity and higher cargo and passenger revenues.

For its IPO, Aznar Shipping plans to offer of up to nine billion primary common shares, with an over-allotment option of up to 100 million secondary shares, at an indicative offer price of up to P0.67 per share, subject to a bookbuilding process.

At the maximum indicative offer price, the primary offer may generate up to P670 million in gross proceeds for the company, while secondary shares under the over-allotment option may add up to approximately P67 million.

“I know it’s a capital-raising activity, right? But on top of that, that’s not the only reason. It’s really for long-term sustainability,” Aznar said.

“We’re a third-generation family business, and for me, I would want our family business to outlast me,” he said, noting that being a public company serves as the gold standard of corporate governance. 

“That’s what really encouraged me and inspired me to undertake that endeavor, and I believe doing so would help sustain our business over many generations more to come,” Aznar said.