MPTC seeks to cut debt before listing next year

By Ashley Erika O. Jose, Reporter

METRO PACIFIC Tollways Corp. (MPTC) plans to go public next year after focusing on toll road expansion and debt reduction this year, its top official said.

“We are looking to do an IPO (initial public offering) sometime in the future,” MPTC President and Chief Executive Officer Jose Ma. K. Lim told Money Talks with Cathy Yang on One News on Monday. “It is going to probably take a little more time, maybe the race will be a year from now.”

Preparations for the IPO of Metro Pacific Investments Corp.’s (MPIC) toll arm had started, but the priority now is cutting its debt and completing projects, he added.

“We have some roads to finish,” Mr. Lim said. “The connector road has about two more kilometers to be completed and we also have some access roads to build in Cebu to complement the bridge.”

MPTC has allotted P35 billion for capital expenditures for various projects this year. The Governor’s Drive Interchange of the Cavite-Laguna Expressway (Calax) is among the projects scheduled for completion this year.

Calax is 95% finished, Mr. Lim said, adding that they are building the Cebu access roads to the airport to facilitate more traffic.

In 2024, MPTC said it was negotiating with Acciona SA for the expansion and upgrade of the Cebu-Cordova Link Expressway.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said the company’s decision to target a 2026 IPO reflects a strategic response to its financial and operational standing.

“This timeline allows MPTC to address its debt obligations and prepare for market entry with stronger valuation,” he said in a Viber message.

But he also cited the uncertainty surrounding the IPO given MPTC’s planned merger with San Miguel Corp. (SMC).

MPTC Chairman Manuel V. Pangilinan said the company had deferred merger talks with San Miguel to focus on fundraising activities to cut its debt. In March, the tollway company said it planned to sell 20% of its stake in MPTC to cut debt.

MPIC, which owns 99.9% of MPTC, earlier said MPTC accounted for most of its P64.99-billion short-term debt and the current portion of its long-term debt as of end-2024.

Mr. Arce said the planned IPO in 2026 would give MPTC the opportunity to strengthen its financial standing but could hurt its merger plans with San Miguel since the parties had also announced a plan to list the merged company.

“If MPTC lists independently before the merger is finalized, it might complicate future integration efforts, particularly in terms of shareholder alignment and regulatory compliance,” he said.

More than awaiting better market conditions, MPTC’s preferred timing is probably to provide a clear market for sister company Maynilad Water Services, Inc., which is also planning to list in the next two quarters, Juan Paolo E. Colet, managing director at China Bank Capital Corp.

“MPTC’s IPO will be a price discovery exercise, so that might affect the sensitive negotiations around the valuation of the proposed merger with San Miguel’s tollway business,” he said in a Viber message.

He added that if MPTC decides to list ahead of its planned merger, San Miguel would likely infuse its tollway assets into the company.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT, Inc.

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