STEELMAKER SteelAsia Manufacturing Corp. said that conducting an initial public offering (IPO) is still under consideration and remains part of the company’s strategic plans for the future.
The company’s IPO could happen in the next five years, SteelAsia Chairman and Chief Executive Officer (CEO) Benjamin O. Yao told BusinessWorld on the sidelines of a launch event in Makati City last week.
“Right now, it’s at the back of our mind. But we’re focused now on expansion first,” he said.
“We are not saying that we are not pushing for the IPO. It’s just that our priority now is on the execution of our projects. We are still open to it,” he added.
In 2019, SteelAsia announced that it was aiming to go public within the next two years to generate funds for the company’s expansion efforts.
“I think everybody is waiting for the (interest) rates to go down. I think that will recover. It’s a matter of time,” Mr. Yao said.
Mr. Yao said that SteelAsia is aiming to achieve over 10% revenue growth this year, led by the company’s infrastructure projects.
He said that the company’s performance was “good” in 2023 but “almost the same as in 2022” due to the effect of the pandemic.
“We are busy with infrastructure projects like the subway and railway… We have many expansions like I-beam, H-beam, sheet pile… Our expansion is all for import substitution,” Mr. Yao said.
“The market is there but it is just waiting for us to make it happen in the next two to three years,” he added.
He also said that the company’s industrial-scale melt shop in Lemery, Batangas, has experienced delays and is now expected to commence operations in early 2025.
SteelAsia had previously announced that the 600,000-ton melt shop was scheduled to start operations this year.
“It will now be early 2025. The delay is due to the usual permits and other factors, including the availability of high-voltage power, which is necessary for steel production. But these issues have already been addressed,” Mr. Yao said.
The company’s melt shop will utilize local scrap metal to produce high-grade billets, which serve as raw materials for constructing buildings, ports, and ships.
SteelAsia has six plants in the country, two of which are in Bulacan, and one each in Cagayan de Oro, Davao, Cebu, and Batangas. — Revin Mikhael D. Ochave