PHINMA Education Holdings Inc., the school operator of listed parent Phinma Corp., is postponing its plan to conduct an initial public offering (IPO) to 2021 as the company is still working on strengthening its profitability following the implementation of the K-12 program, which has affected its revenues.
“With the start of the K-12, we decided to postpone the IPO to around 2021, essentially because the introduction of Grades 11 and 12, which we agree is important, means we will not have freshmen in 2016 and no freshmen and sophomores in 2017,” Chito B. Salazar, Phinma Education president, told The Manila Times in an email interview.
“So our financials in these years will not truly be reflective of our profitability. For this reason, we decided to postpone the IPO,” he added.
Phinma Education earlier said it was considering an IPO by 2017 at the earliest to raise funds to grow the company and take on opportunities in the education sector in the local and international markets.
Salazar said the company is currently looking for acquisition opportunities in the Philippines and in Southeast Asia to add to its current network of five colleges (Southwestern University, Phinma Araullo University, Phinma Cagayan de Oro College, Phinma University of Pangasinan, and Phinma University of Iloilo), a high-end senior high school brand under Career Academy Asia (CAA), and a training center in Yangon, Myanmar.
CAA Makati started operations this year while the training center in Myanmar opened last August.
“We continue to look for acquisitions and are actually in talks with schools in Laguna and Davao. We hope these discussions will result in additions to the network next year,” Salazar said.
For 2017, Salazar said they expect to open CAA Cebu and establish two more schools in Myanmar while working on cornering global partnerships in Myanmar and Indochina countries.
“We actually opened the Phinma Training Center in Yangon this August 2016, and as a prelude to nursing, we are offering caregiving courses. We are in partnership with one of the biggest hospitals in Yangon, the Victoria Hospital. We intend to really build up our schools in Myanmar. We aim, pending legislation, two more schools this 2017—a techvoc center in one of the industrial parks, and a college in one of the secondary cities,” Salazar said.
“We hope to replicate our experience in the Philippines of providing accessible quality education to the low-income families of Myanmar,” he said.
“Definitely, Myanmar, for us, is a learning experience, preparing us for other countries. We would like to be in the rest of Indochina—Cambodia, Laos and Vietnam. Eventually, our vision is to enter Indonesia. Education is such a big need all over the world, and continues to be the way out of poverty. Given this, we see we have quite a lot of opportunities globally,” he added.
Phinma Education’s parent hinma Corp. has businesses in manufacturing steel products (Union Galvasteel Corp.); property (P&S Holdings Corp. and Asian Plaza Inc.); business process outsourcing (One Animate Limited); and energy (Phinma Energy Corp.).