An initial public offering (IPO) for Palawan Group of Companies is always “on the table,” but there’s no urgent need to raise funds, president and chief executive Karlo Castro said Wednesday.
“In terms of going public… it’s always on the table,” Castro told reporters on Tuesday at the sidelines of the group’s 40th-anniversary celebration.
“Probably the last five years or so, it has always been discussed,” he said.
Castro said that while an IPO is a recurring topic within the family and with independent directors, it’s unlikely in the “next year or two.”
The Palawan Group, led by the Castro family, operates one of the Philippines’ largest pawnshop chains. Starting with pawn brokering, the company has expanded its services to include money remittance, foreign currency exchange, e-loading, bills payment, and accident insurance.
Castro cited the importance of being prepared for an IPO, regardless of the timeline, as “it takes a journey to really be ready for IPO.”
He said the main advantage of an IPO would be funding for expansion. “Right now, there’s no urgent need for the group to do that,” Castro said, but acknowledged the company’s “aggressive five-year strategic plan.”
Similar to an IPO, bond sales are also regularly discussed at the board level as a potential funding option for expansion, he said.
“Right now, we have good relationships with banks to refuel the growth that we’re planning,” he said.
