Philippine Airlines mulls re-IPO solution to increase funds

Philippine Airlines mulls re-IPO solution to increase funds

PAL Holdings , the operator of flag-carrier Philippine Airlines, is looking at the possibility of organizing a re-initial public offering (re-IPO) to raise funds and then comply with the looming higher public float requirement for listed companies. PAL president Jaime Bautista said the organization is preparing to comply with the up coming regulation should it be implemented this year. “We’ll learning that …if we will really be required, because I can understand it’s not really a requirement yet. It’s a requirement only for new listed companies but also for existing listed companies, we can stay on the minimum ten percent,” Bautista said.

A re-IPO is a follow-on providing on an already listed stock. PAL become a publicly-listed company after it did a backdoor listing in 2007. Its public float nowadays stands at 10.32 percent. Bautista said the company is able to comply with the float requirement determined by up to what is mandated by the regulators. “We have not appointed a wise investment bank yet, but there are lots of investment bankers who are asking meetings already. Right after the signing of agreement with ANA, I received minimum five calls from investment bankers offering to do the re-IPO of PAL Holdings,” Bautista said.

The Securities and Exchange Commission last year postponed the higher public float requirement for organizations that can be listed in the market given the prevailing market conditions. The new entrants, however, have already been slapped a higher public float of twenty percent from the previous ten percent. ANA Holdings, the parent company of Japan’s most populous airline All Nippon Airways, announced last month the investment in PAL Holdings through the acquisition of 9.5 percentage outstanding shares for an overall total investment of $95 million.

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