Harbor Star sets P600-M initial offer

MANILA, Philippines - A local tugboat operator is all set for its P600-million initial public offering (IPO) after securing the approval of regulators.

The planned listing, which comes at a time of volatile swing in the local stock market, will mark the fourth local firm to go public this year.

Philippine Stock Exchange (PSE) president and CEO Hans B. Sicat said the local bourse’s board of directors approved the IPO application of Harbor Star Shipping Services Inc. last Thursday.

“It’s a tugboat operating company. It’s a relatively small IPO,” Sicat said.

Sicat said Harbor Star will be listed in the PSE’s main board.

In an earlier filing with the Securities and Exchange Commission, Harbor Star said it targets to sell a 30-percent stake to the public worth P600 million to fund local and international expansion.

Harbor Star, which tapped Abacus Capital and Investments as its lead issue manager and underwriter, plans to sell 181.60 million existing shares at P3.27 each.

Proceeds of the IPO will finance the acquisition of tugboats, landing craft tank barges and anchor handling supply. It will also pare down its debts.

Harbor Star started commercial operations with just one tugboat in 1998. After 10 years, it has increased its fleet to more than twenty tug boats located in major ports like Bataan, Batangas, Quezon, Cebu, Iloilo, Cagayan de Oro, Leyte and Davao.

Its services include ship salvage, wreck removal, firefighting, oil spill abatement and recovery and handling hazardous chemicals.

Harbor Star will be the fourth company to go public this year, following in the footsteps of Philippine Business Bank, Asia United Bank and Del Monte Pacific Ltd.

Sicat said the PSE board is still evaluating the IPO applications of several firms like upscale hotel operator Discovery World Corp. and sportswear maker Hengda Group Holdings Corp.