Phinma Education Holdings Inc. (PEHI), a unit of conglomerate Phinma Corp., said Tuesday it would push back its planned initial public offering, following the entry of a global investor group led by KKR.
PEHI president and chief executive Chito Salazar said in a news briefing the planned IPO might be pushed back by three to five years, after it secured funds from KKR to fund its expansion plans.
The company said earlier it was mulling an IPO to fund expansion.
PEHI said the company would now get P4.5 billion in fresh capital from the KKR, which it could deploy over the next five years. Salazar said the company might also acquire two new schools in Cavite and Metro Manila this year, which could entail of an investment of P500 million each.
Salazar said they also plan to acquire more schools in the Philippines and Indonesia. PEHI also plans to venture in other Southeast Asia countries including Vietnam and Cambodia.
PEHI signed a P4.5-billion investment agreement with Phoenix Investments II Pte. Ltd, an investment fund managed by KKR, and Rise Edu Pte. Ltd., which is managed by Kaizenvest (Kaizenvest III) in May.
Post transaction, funds managed by KKR and Kaizenvest III will respectively own, directly or indirectly, 30.67-percent and 3.73-percent stakes in PEHI.
Phinma will continue to be a majority shareholder of PEHI. The transaction is expected to close in the third quarter of 2024, subject to regulatory approvals, including that of the Philippine Competition Commission.
PEHI, established in 2004, seeks to provide quality, affordable tertiary education. It is one of the largest private higher education groups in Southeast Asia, serving around 150,000 students through its fast-growing network of colleges and universities, including nine in the Philippines and one in Indonesia.
Enrollment increased by 18 percent in school year 2023-2024, which resulted in a 26-percent growth in revenue amounting to P5.69 billion.
