FastCat operator eyes IPO this year

MANILA, Philippines — Archipelago Philippines Ferries Corp. (APFC), the shipping company that operates FastCat, may embark on an initial public offering (IPO) this year in hopes of raising a substantial amount to fund the expansion of its fleet and strengthen its position as a logistics company.

APFC president Christopher Pastrana said the company plans to brave the stock market this year and go public as it sets sail on adding more vessels. 

“Right now, I understand to be able to achieve our 60 vessels we need to go public. We’ll probably raise some equity in the capital market. Hopefully valuation will be good that we’ll be able to raise a substantial amount so we don’t have to borrow anymore. From the investment of our institutional partners, we can build more ships without having to borrow,” Pastrana said.

“We are now being courted by several companies from overseas, from China, Singapore, Germany, then we have interested funds who want to invest. We are looking at local partners who are also interested to join us, so I believe that the opportunity in shipping and logistics are big,” he said. 

APFC has tapped Mabuhay Capital as the firm’s financial advisor for the potential IPO.

Pastrana said the country strongly relies on sea transport as a means of moving people and goods as almost half of the Philippine population uses ships, especially those in the countryside.

FastCat currently has 12 vessels in its fleet servicing the eastern and western part of the central corridor. The vessels currently serve some three million passengers annually.

The company is initially undertaking a modernization drive of having 30 vessels by 2020, which requires a total investment of $240 million, all of which are already funded through bank loans.

Once its achieves its fleet target of 30 ships, Pastrana said the company would be able to serve some 10 to 11 million passengers and about 12 million tons of cargo.

“We are not just a shipping company. We are a transportation company because we have the bus, the terminals, we have all the components that would provide seamless movement of people and goods so we’re not just providing shipping service,” Pastrana said.

APFC was incorporated in 2002 to provide a vital maritime link between the Philippines’ 7,107 islands.

Since then, the company has forged partnerships with bus companies JAM Liner and Philtranco to enhance passenger service and provide more efficient movement of goods in the country.