Palawan Group sees no rush to go public
Palawan Group of Companies, one of the largest pawnshop and money transfer firms in the Philippines, is unlikely to tap the stock market before 2029 as it focuses on its five-year strategic plan.
But going public remains a “warm option” after the idea was first floated in July, the group’s top official said.
In an interview with reporters on Wednesday, Palawan Group president and CEO Karlo Castro said the company had yet to take any concrete steps toward an initial public offering (IPO).
“I cannot say that we’re not going to do it because, during all the board discussions and the planning, it always comes up,” he said.
While Palawan Group is a family-run business, Castro said it’s operated like an IPO-ready enterprise.
The firm is currently in the second year of its five-year strategic plan, which runs through 2029.
“I would say not until probably after the five-year strategic plan that we have. We’re just keeping it warm. We’re just getting ready if ever we choose to,” he added.
In July, Castro already floated the idea of public listing. While not yet an urgent need, he said the company remained “bullish” on the possibility. He did not provide a specific timeline for when the IPO might occur.
Similarly, the company had no plans to issue bonds in the next five years, Castro said.
“Right now, in terms of financial resources, we’re able to get that from a lot of the commercial banks. And with the internally generated income combined with our loans from banks, we’re able to actually do the expansion both in network and in business,” he said.
While there is no urgent need for bond issuance, Castro added that “things could change,” leaving the door open for future financing options.
Castro added that the company’s net income for the year was “not in the red.”
Just recently, the company partnered with global remittance leader RIA Money Transfer, whose parent company, Euronet Worldwide Inc. is listed on NASDAQ, to launch new money transfer service Pera Padala Abroad.
Through the service, clients can transfer funds to bank accounts, e-wallets or cash pick-up locations in nearly 200 countries, with fees starting as low as P300.
