For Aznar Shipping, going public means growth – and dodging third-gen curse

'My main job is really to hand it over to the next gen,' the third-generation Aznar tells Rappler. 'Looking at the IPO process, the requirements, the standards that you are held to, it really coincided with my interest.'

AT A GLANCE

• Kyle Alexander Aznar, the CEO of Aznar Shipping, is determined to break the generational curse that often affects family businesses by preparing to take the company public through an IPO.
• The IPO aims to raise up to P737 million for fleet expansion and is part of Aznar's strategy to ensure the company's success for future generations, emphasizing professional governance and mentorship.

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As his family’s shipping legacy prepares to open itself up to the public, Kyle Alexander Aznar had an age-old curse on his mind.

“You know what they say, the third generation is the last generation,” the Aznar Shipping president and CEO told Rappler on Friday, September 18.

He was, of course, referring to the infamous adage that warns family fortunes rarely survives three generations. The first makes the money, second grows it, the third squanders what’s left. Gone, wasted, kaput. 

The third-generation Aznar wasn’t about to let that happen. He was only 27 when he suddenly had to take over the family shipping business after his father died. Now 31 and at the helm, he sees one job as more important than simply making money.

“My main job is really to hand it over to the next gen,” Aznar told Rappler at the sidelines of his company’s H1 briefing. “We want our business to succeed — not just for my time. It’s really succeeding generations.”

His chosen way to keep the family ship afloat for another generation? Open it up to the public.

Aznar Shipping has filed for an initial public offering (IPO) that could see the Cebu-based company sell as many as one billion primary shares at an indicative price of up to P0.67 each, potentially raising P670 million in gross proceeds for the company. Another 100 million secondary shares could be sold through an overallotment option, bringing the total potential offer size to P737 million.

At this stage, everything still remains subject to book building and approval by the Securities and Exchange Commission and Philippine Stock Exchange (PSE). Aznar said the company is targeting a December listing, but stressed that he did not want to “jump the gun” on regulators.

A family business trying to grow up

Aznar is hardly the only old name sailing out of Cebu. 

Cebu has long been one of the country’s biggest shipping hubs, producing generations of shipping families, from the Gothongs and Robles to the Cokaliongs and the Lims. The Aboitizes were once part of that club too, with Aboitiz Shipping eventually evolving into 2GO, now under the Sy family’s SM group. (READ: As Atlas Mining leaves by 2027, SMIC expects 2GO, renewables to fill gap)

But while many shipping businesses have remained private and closely held, Aznar sees public company governance as part of the antidote to the generational curse.

“Looking at the IPO process, the requirements, the standards that you are held to, it really coincided with my interest. That’s how I first started getting interested in it quite a few years ago,” he told Rappler.

The professionalization actually began before the IPO. Even before the company’s aspirations to go public, the shipping company already had independent directors sitting on its board. Aznar said he has been the only family member on the board for the past three years, surrounded instead by professionals whom he calls his mentors.

“I was just only 27 when I had to take over the company when my dad passed away,” he said. “I was humble enough to realize that I might not have all the answers, I might not always be right.”

That setup, he believes, has paid off.

Aznar Shipping’s revenue jumped from P59.2 million in 2023 to P223.9 million in 2025, when it booked P51.7 million in net income. In just the first six months of 2026, revenue reached P210.9 million while net income hit P53.2 million, already topping the previous full year. 

The company currently operates nine vessels across four principal Visayas corridors, with cargo and rolling vehicles accounting for about 86% of first-half revenue.

The company wants to use IPO proceeds primarily for fleet expansion, with plans for newer vessels and, farther down the road, its own dry-docking facility. Aznar also said his company is not specifically hunting the customers of rivals.

“We’re not really eyeing specific players,” he told Rappler. “We’re following the market. We’re looking at complementary routes. We’re following our customers.”

Rough waters for an IPO?

If Aznar wants to test whether investors believe the family business can survive another generation, he’s choosing a challenging time to do it.

Even before getting to the stock market, the shipping industry is contending with elevated fuel prices. Aznar said fuel is the company’s biggest operating cost, although its move toward larger vessels has helped protect margins because capacity has increased much faster than operating expenses. (READ: DOE sees ‘no signs’ oil prices will fall as excise tax relief goes on table)

“Our new vessel could probably carry three or four times the load of our previous one. But the operating cost is more or less the same,” he said. “That’s how we’ve kept our rates affordable. That’s how we’ve protected our margins as well.”

So far, Aznar said demand has held up despite the broader economic uncertainty. “Our numbers are good,” he said. “The demand is there. The volume is there. And I believe it’s the right time to expand.”

But the bigger uncertainty may be whether investors will be equally ready.

The PSE index remains below the 6,000 level amid worries over slow economic growth and broader market uncertainty, well below the roughly 7,800 level where it ended 2019 before the pandemic.

Then there’s the very large elephant potentially barging into the stock exchange just weeks ahead of Aznar: GCash.

Mynt, the operator of GCash, is targeting an October 20 listing for an IPO worth as much as P92.3 billion, dwarfing Aznar’s planned offering. Would there still be enough liquidity left in the market after the biggest IPO in Philippine history when Aznar comes knocking in December?

The young shipowner, for his part, offered an appropriately maritime answer to the uncertainty.

“Market conditions, they’re out of our control. They’re just like the sea. You can’t always hope for calm waters,” he said. “What you can do is really learn to sail in rough conditions.” – Rappler.com