Cebu Pacific IPO Update
Posted on August 7th, 2008
Poor market performance has caused Cebu Pacific to finally shelve its planned IPO. It was supposed to list $309-million in IPO this year but eventually has decided against it because of the current market situation. “It (IPO) is shelved,’ Lance Gokongwei, President and CEO of Cebu Pacific, told reporters, he said that the airline instead will resort to loans and other internal income-generating activities to meet financing requirements. “In this environment, nobody is going to market†he added.
With around 47 share of the domestic market, Cebu Pacific flies to 24 cities locally and to 16 cities in Asia. And one of its reasons for generating funds is its plan to increase to 25 its current fleet of 20 aircraft.
Established as Cebu Air in 1988, it was subsequently acquired by JG Summit Holdings. Initially started with 24 domestic flights daily in Metro Manila, Davao City and Metro Cebu. Growing its operations to about 80 daily flights to 18 domestic destinations by the end of 2001.
