IPO remains in Palawan Group’s plan

A top official of the country’s leading and most trusted pawnshop and remittance firm, Palawan Group of Companies, said they are not discounting the possibility of selling or sharing stock with the public through an initial public offering (IPO), a plan that remains part of their 40-year existence.

“Having an IPO is a constant discussion, as well as debate, within the board and our family. It’s always on the table. I would say in the next couple of years, but I cannot say a definite time frame. It is being discussed. Whether we do it or not, I cannot commit yet,” said Karlo Eugene Josef Castro, president and CEO of Palawan Group of Companies, in an interview on the sidelines of the ‘Ikaw Pa Rin ang Number 1’ event at the New World Makati on Wednesday.

He said that for this year, Palawan will execute the opening of roughly 200 physical branches throughout the country as they are very aggressive on it; however, fewer openings are expected in 2026.

Bullish, ambitious

“We are very bullish and ambitious. A lot of our services are growing, even during the pandemic. The pawnshop is growing double-digit, as our jewelry sales are increasing. Palawan Credit is quite new, now in its 2nd year, but it’s doing very well. Our Palawan Pay, launched in 2021, already has close to 22 million registered users and counting. We are launching new services every month,” Castro explained.

Further, he said Palawan Business-to-Business services are indeed growing as the company is embracing digitization in full throttle.

“We are (actually) servicing over 1,000 companies, whether collections or disbursements. Our microinsurance, as well, is, I would say, democratizing insurance in the Philippines as we are offering insurance both available over the counters in our branches and also online. We are very bullish and we believe we have a good plan for the next five years,” Castro maintained, but did not discount changes, as their business is dependent on the market environment of the country.

Brick-tech approach

Castro said opening more branches is a combination of brick-and-mortar and technology.

“The combination of the physical branches and the network, as well as the agents, partners in the cash-in and cash-out shops. So, it’s multi-faceted. The goal for the expansion is to be present everywhere in the Philippines. If you look at our network, we are not just present in cities but also in far-flung areas or barrio level. But we are also expanding digitally,” he said.

He stressed that Palawan Pay is a big part of the future of Palawan Group.

“We are also present in other online channels, even in the online shopping channels, you’ll be surprised, we do some business there,” he added.

Palawan Pawnshop currently has close to 3,600 branches, but when combined with its digital business (cash-in, cash-out, and remittance agents), Palawan Group has 70,000 ‘brick-tech’ outlets.

Palawan Group is currently operating various business units, namely Palawan Pawnshop, Palawan Express Pera Padala, Palawan ProtekTODO, Palawan Credit, and PalawanPay.

The Palawan Group of Companies offers a wide range of services, including pawning, domestic and international remittances, microinsurance, bill payment, electronic mobile phone loading, cash-in and cash-out of e-wallets, money exchange, ATM withdrawal, and cash disbursements.

Additionally, the company sells jewelry and gold bars, catering to customers looking to invest in valuable assets.