PLDT defers VITRO listing
Telco giant PLDT Inc. is postponing the P24.2-billion listing of its data center arm, blaming rising interest rates and the worsening economic health for its decision to defer.
Manila, Philippines – Major telecommunications company, PLDT Inc., is delaying the P24.2-billion listing of its data center subsidiary, VITRO Inc., citing concerns over rising interest rates and deteriorating economic conditions. PLDT disclosed in a filing with the Philippine Stock Exchange (PSE) that it has halted the planned listing of VITRO as a real estate investment trust (REIT).
VITRO, PLDT's leading data center builder, had intended to file an initial public offering (IPO) this year to raise up to P24.2 billion, marking the first data center operator listing in the Philippines. The IPO would have provided VITRO with the necessary funds to develop additional data centers and repay debts. However, PLDT decided to postpone the IPO until 2027, in order to monitor the evolution of economic factors.
The leading telco expressed concerns that a premature listing this year could expose VITRO to various economic risks and interest rate hikes. Despite this setback, PLDT reaffirmed its commitment to listing VITRO as a crucial component of the group's asset monetization and debt reduction strategy, while promoting the growth of the REIT portfolio and the expansion of its data center business.
VITRO, the Philippines' largest data center developer, has a portfolio of eight projects with a combined capacity of approximately 24 megawatts. Nevertheless, VITRO's infrastructure potential remains vast, as the Sta. Rosa project, capable of reaching 50 MW, has yet to be incorporated into the listing plans. Furthermore, VITRO is in the process of constructing a P40-billion data center in General Trias, Cavite, designed to accommodate 100-MW operations.
The company's listing on the PSE would be the first digital infrastructure REIT in the nation and is anticipated to spur other technology firms to go public. However, VITRO's journey to listing faces numerous challenges, ranging from mounting public opposition to data centers, to escalating electricity costs due to geopolitical tensions in the Middle East.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
