Philippines’ biggest toll road operator plans IPO to raise US$500m: sources

METRO Pacific Tollways, the largest toll road developer and operator in the Philippines, could raise US$500 million from a planned initial public offering (IPO) on the local bourse, 2 sources close to the matter told Reuters.

Metro Pacific Tollways’ president and chief executive Rodrigo Franco declined to comment on the financial details of the IPO but said the aim was to list the company in late 2023 or 2024.

The listing of Metro Pacific Tollways, in which Hong Kong’s First Pacific has a 43.9 per cent interest, could value the company at more than US$2 billion, the sources said, declining to be named because the IPO details are confidential.

Proceeds from the planned IPO will be used for expansion at home and in other markets in South-east Asia, Franco said, adding the company has yet to appoint financial advisers for the deal.

The company’s current toll road portfolio in the Philippines includes the North Luzon Expressway and the Subic-Clark-Tarlac Expressway, among others, its website says.

Regionally, the company has investments in Indonesia via PT Nusantara Infrastructure Tbk and in Vietnam’s CII Bridges & Roads Investment Joint Stock Company, the website shows.

Metro Pacific Tollways is part of Manila-listed conglomerate Metro Pacific Investments, which in turn is majority owned by First Pacific’s Metro Pacific Holdings, according to Refinitiv data. REUTERS