PAL Holdings, the owner of Philippine Airlines (PR, Manila Ninoy Aquino International), is considering a re-IPO in a bid to increase liquidity, according to news site The Philippine Star.
PAL Holdings entered the Philippine Stock Exchange (PSE) in 2007 using a 'backdoor' route through a share exchange with Baguio Gold. Releasing shares through the re-IPO could allow the national carrier to continue its fleet expansion as it aims to reach five-star full service carrier status.
In 4Q16, PAL Holdings, which is owned by alcohol and tobacco tycoon Lucio Tan, initiated a share swap with minor shareholders of Philippine Airlines in order to consolidate its holding to 100% of the airline. Shortly after, it engaged in another share swap to take ownership of Zuma Holdings Management Corporation which in turn owns PAL Express (2P, Manila Ninoy Aquino International). Consolidating the two airlines under PAL's umbrella is seen as a tactical move to lure investors. According to Bloomberg, PAL has been actively looking for strategic investors with airline experience, particularly to assist it in fleet management.
Figures in The Financial Times show that PAL Holdings enjoyed year on year revenue growth from 2013 – 2015 and achieved positive net income in 2014 and 2015. It is currently trading at PHP5.09 (USD0.10) per share.
