Cebu-based shipping operator Aznar Shipping Corp. is executing a fleet acquisition program to expand vessel capacity across the Visayas.
Aznar Shipping currently operates nine ships on short-haul, high-frequency Roll-on/Roll-off (RoRo) passenger routes connecting secondary ports in Cebu, Leyte, Panay, and Negros Occidental.
According to President and Chief Executive Officer Kyle Alexander C. Aznar, the company’s strategy centers on route economics, port infrastructure, and increasing deployment frequency.
Aznar Shipping has one Landing Craft Tank (LCT) RoRo vessel incoming and plans to acquire two IACS-classed vessels within the next one to two years, subject to initial public offering (IPO) approval.
The company procures newbuild vessels primarily from a shipyard in Zhejiang Province, China, citing cost parameters, labor availability, modern technology, and delivery timelines. Long-standing shipyard relationships grant priority slot allocations despite global backlogs.
Aznar noted that shipbuilders like Tsuneishi construct world-class vessels for international markets with costs running into billions of pesos, making them infeasible for local routes. Japanese shipbuilders have also seen price increases due to labor shortages. However, the company remains open to domestic shipbuilders if they meet required pricing and timeline parameters.
To support its capital expenditure plan, the company has filed a registration statement for an IPO on the Philippine Stock Exchange to raise up to P737 million, following strong first-half financial performance.
Capital allocation will also support shipbuilding and ship repair capabilities, helping the company maintain an average fleet age of approximately five years.
Aznar Shipping is utilizing three funding sources for its fleet acquisition plan: net primary IPO proceeds prioritized for core expansion and vessel acquisitions, commercial bank financing as an additional capital avenue, and ongoing operational cash generation to complement equity and debt funding.
For the first half ending June 30, 2026, Aznar Shipping reported revenues of P210.99 million, up 109.75 percent from P100.59 million in H1 2025. This growth was driven by higher capacity and volume following the deployment of MV Manoling 6 on the Cebu–Negros Occidental route and MV Alexander 1 on the Cebu–Leyte route.
Net income reached P53.19 million, up 155.11 percent from P20.85 million in H1 2025, while EBITDA was recorded at P103.12 million, up 96.76 percent from P52.41 million in H1 2025. Rolling cargo and vehicle transport accounted for approximately 86 percent of total revenues, while passenger transport contributed 14 percent.
The proposed offering consists of up to 1 billion primary common shares to raise up to P670 million, alongside an over-allotment option of up to 100 million secondary shares from affiliate Ibasco to raise up to P67 million. Featuring an indicative offer price of up to P0.67 per share, the company targets listing during December, subject to Securities and Exchange Commission and Philippine Stock Exchange approvals, with primary proceeds dedicated to financing fleet acquisitions, supporting infrastructure, and core business development.
