MacroAsia to list water business

MANILA, Philippines — Emerging opportunities in the water sector are encouraging Lucio Tan’s MacroAsia Corp. to list its growing water business separately in the Philippine Stock Exchange.

Joseph Chua, MacroAsia president and COO, said the company intends to do an initial public offering of its water operations within the next three years.

“Considering the opportunities that abound, we envision to grow further our water business with the mindset to eventually spin off and list this segment separately at the Philippine Stock Exchange within three years,” Chua said.

Chua said MacroAsia’s expanding water operations would provide the diversification needed to boost the company’s growth outside of the aviation sector.

“Together with the aviation business, we foresee a strong base to generate shareholder value,” he said.

To prepare for the public listing, MacroAsia chief financial officer Amador Sendin
said all its water companies would be transferred to a new holding company.

“At the same time, we’re currently improving the revenue and income base for that segment,” Sendin said.
MacroAsia started its water concessions in March 2016, but by the end of last year, the publicly listed company has expanded its water operations in Nueva Vizcaya, Cavite, Boracay Island, Bulacan, Albay, and Iloilo through various subsidiaries and an associated company.

Last year, Chua said operations in Boracay through subsidiary Boracay Tubi System Inc. was affected by the government’s order to close the island for tourism.

However, when the island was reopened, he said the company was able to gain market share from its competitor as it signed long-term supply contracts with many hotels.

MacroAsia in October last year was also able to acquire 60 percent of Summa Water Resources Inc., an original equipment manufacturer that operates and manages bulk water projects in Bulacan, Albay, and Iloilo.

The company is building the water treatment plant for MacroAsia’s Maragondon bulk water project in Cavite.

“Our revenues from the water businesses will similarly expand because of the bigger account portfolio that we gained in several provinces,” Chua said.

Last year, MacroAsia’s revenues from water operations contributed eight percent to the company’s total revenue as it saw an increase of 90 percent to P271.04 million from P142.65 million the previous year.

MacroAsia is the aviation-related services company of tycoon Lucio Tan which is involved in various businesses such as aircraft maintenance, repair and overhaul, catering, ground handling, and water.