MANILA, Philippines – PAL Holdings Inc. (PAL), tycoon Lucio Tan’s listed flagship airline company, is considering a re-IPO this year to beef up liquidity and raise capital that will support its planned investment program and future growth.
The planned re-IPO (initial public offering) comes almost 10 years since the company did a backdoor listing in 2007.
In a round table discussion with The Star, Tan’s son, Michael said the company is looking at how to go about the planned re-IPO.
A re-IPO is a follow-on offering on an already listed stock. However, given the low free float and low trading liquidity, a listed firm can opt to market the share offering as a re-IPO.
The objectives in doing a re-IPO are usually to increase investor interest in a stock by increasing liquidity and to raise capital.
“We’re still discussing how we’re going to go about it. We need to choose an investment banker first to handle the process,” said the younger Tan, president of LT Group and PAL director.
He said the company hopes to embark on the re-IPO this year on the back…