MANILA, Philippines — Pawnshop giant Palawan Group of Companies is open to launching an initial public offering (IPO) or a bond issuance in the coming years, but has no immediate plans to tap the capital markets as it continues to expand its core businesses and digital offerings.
“We’re in constant discussion. It’s always on the table,” Palawan Group president and CEO Karlo Castro said. “Probably not in the next year or two. But whether we do it or not, the goal is to be ready.”
Now on its 40th year, the Palawan Group, best known for its pawnshop, remittance and microinsurance services, is implementing an aggressive five-year strategic roadmap focused on strengthening its core operations, scaling digital channels and reaching more underserved Filipinos.
Castro said there is currently no urgent need to raise capital through an IPO or bonds, as the group maintains strong relationships with banks to support its growth.
However, discussions with independent directors and financial advisors are ongoing, and the company is open to capital market alternatives “if and when needed.”
“We’re very bullish with our plans. We want to be at the door, so when the time is right, we can just open it,” he said.
Palawan’s five-year strategy hinges on further dominating the local pawnshop sector, defending its position in money transfer and remittance services as well as accelerating digital innovation through its e-wallet platform, PalawanPay, which now has nearly 22 million registered users.
Launched in 2021,
PalawanPay supports both over-the-counter and digital transactions. It is steadily evolving into a full-scale platform with marketplace features, jewelry purchases, bills payment and collaborations with other banks and e-wallets through QRPh and InstaPay.
According to Castro, growth is not just about increasing
users, but also expanding use cases and harnessing customer data to offer tailored financial services.
“The plan really is to be present everywhere,” he said.
“The goal is to serve the underserved and the underbanked, whether they need additional funding for their small businesses or need to send money, either over-the-counter or through digital channels,” Castro said.
Palawan is also ramping up investment in Palawan Credit, a lending service geared toward small and medium enterprises, as well as Palawan for Business, which provides disbursement and collection services to companies of all sizes.
Another growth area is gold as Palawan aims to promote gold not just as a pawned item or jewelry product, but also as an investment asset.
“If you bought gold last year and kept it until now, (prices) could be up 30 to 40 percent,” Castro said.
In light of a draft Bangko Sentral ng Pilipinas circular that seeks to regulate pawnshop partnerships with online gambling firms, Castro made it clear: “We have no exposure to online gambling or gaming.”
He also said that PalawanPay does not offer gambling-related services on its app. The company also does not facilitate gambling-related disbursements or collections at its branches.
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