Harbor Star gains on listing debut

MANILA, Philippines - Tugboat operator Harbor Star Shipping Services Inc. has completed its listing in the local bourse, with its shares inching up in the first day of trading.

Stocks of Harbor Star gained 1.6 percent to close at P1.91 each. It traded at an intraday high of P2.02 and an intraday low of P1.88, which is its initial public offering (IPO) price.

“Of course we will follow the expansion program in the local market. And hopefully we get the Malaysian project for next year,” said Rodrigo Bella, vice-president for operations of Harbor Star.

“We are pleased to note the company’s vigorous efforts to be the leader in harbour assistance services in the Philippines even as it prepares to seek growth opportunities in Southeast Asia,” said Philippine Stock Exchange director Edgardo Lacson.

Harbor Star raised P341.4 million from its IPO. It became the fifth company to go public this year, next to Philippine Business Bank, AG Finance Inc. and Asia United Bank that conducted and IPO, and Del Monte Pacific Ltd. that listed by introduction.

“(Harbor Star) was priced quite cheaply but it’s really for the retail investors given the size,” said Augusto Cosio Jr., president of Dove underwriter First Metro Asset Management Inc.

Cosio said it is a good issue as retail investors face limited choice in logistics-type listed firms.

Harbor Star plans to use the fresh capital for the acquisition of tugboats for domestic and international expansion and refleeting.

Bella said its first tugboat acquisition is scheduled next month.

Harbor Star started commercial operations with just one tugboat in 1998. After 10 years, it has increased its fleet to more than 20 tug boats located in major ports like Bataan, Batangas, Quezon, Cebu, Iloilo, Cagayan de Oro, Leyte and Davao.

Harbor Star aims to be the leading tug and marine service provider in the Philippines and eventually in Southeast Asia by 2020.

Early last year, Harbor Star acquired a 45-percent stake in Malaysian marine service firm Peak Flag, which is targeting ports that posted a notable increase in vessel traffic and are opening additional berthing areas.

Harbor Star’s services include ship salvage, wreck removal, firefighting, oil spill abatement and recovery and handling hazardous chemicals.