SteelAsia eyes IPO in 2 years

MANILA, Philippines — The country’s biggest steel maker, SteelAsia Manufacturing Corp. is looking to go public within the next two years to raise funds for its expansion plans.

“We have to have an IPO, (initial public offering) within two years,” Rafael Hidalgo, vice president for business development at SteelAsia, said Monday.

While the firm has yet to start the process to prepare for an IPO, he said work would be done within two years.

He said the firm has yet to finalize how much it would need to raise from the conduct of an IPO, but noted proceeds are intended for expansion work.

At present, SteelAsia is undertaking the first phase of its expansion.

In particular, the firm is building a mill for rebars in Compostela, Cebu.

It is also putting up a mill for rebars in Concepcion in Tarlac, and for wire rod in Candelaria in Quezon.

After the first phase of expansion, Hidalgo said there are plans to build more facilities to cater to growing demand for steel products from the construction industry.

He said the second phase of expansion would involve more rolling mills.

“It’s really just addressing needs of construction and import substitution,” he  said. 

To date, SteelAsia has six steel mills in the country.