CEBU CITY, Cebu – A water distribution company in Cebu is determined to enlist with the Philippine Stock Exchange next year, as an indication of the bullishness of the water distribution industry in the country.

Said company, Abejo Waters Corporation, announced that it hopes to raise P200 million from potential investors in its Initial Public Offering (IPO) to finance the company’s growing water distribution business.

“The IPO is one venue by which we can become more competitive in the business,” said Abejo Waters Corp. President and Chief Executive Officer Gabino Abejo Jr.. “Since we are aiming for higher and bigger projects, we must have something in our pockets or else we get left behind.”

A family-run business which began in 2003, Abejo Waters Corp. is presently engaged in supplying 17,000 cubic meters of water per day to the Metropolitan Cebu Water District (MCWD). The company sources water from areas with underground reserves and injects water supply to the nearest MCWD pipeline.

In an interview with reporters recently, Abejo revealed that the company has earmarked P1.5 billion as capital expenditure to finance its expansion programs which include from nine to ten contracts in the bulk water distribution business. Most of the said contracts involve joint ventures with local government units (LGUs).

“The industry is now getting stronger,” Abejo said, “ and we don’t want to be left behind; thus we need to position ourselves so that once the business becomes more competitive, then we are ready, at least.”

The aforementioned P1.5 billion, he clarified, will not necessarily come from the IPO although 30 percent of that amount will be sourced internally.