Philippine airline Cebu says IPO off, will take out loans

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MANILA – Cebu Pacific, the Philippines’ second-biggest airline, shelved plans for an IPO and will meet its financing requirements through loans and internally generated funds, its president said on Thursday.

‘It (the IPO) is shelved,’ Lance Gokongwei told reporters, adding that the airline would raise debt to meet financing requirements. ‘In this environment, nobody is going to market.’

Cebu Pacific, with around a 47 percent share of the domestic market, flies to 24 cities locally and to 16 cities elsewhere in Asia.

It was due to list this year but has previously announced it was postponing the $309-milllion IPO due to poor market conditions, with the local stock market now the region’s second worst performer so far this year.

The airline has a fleet of 20 aircraft, which it hopes to raise to 25 this year.