Wednesday, July 16, 2008
Local insurance firm mulls IPO
TEN years after he took over the management of Cebu’s first local insurance company in 1997, businessman Augusto Go said the company’s capitalization grew to P100 million from P10 million in 1997.
Go, president of the Visayan Surety and Insurance Corp. (VSIC), said that once the company reaches the P200-million mark in terms of capitalization, it would undertake initial public offering (IPO) and become publicly listed.
“I’m expecting it (IPO) to happen in five years (at a maximum,” he told Sun. Star Cebu in an interview last Monday.
Go said, though, that he does not know how much funds VSIC is targeting to raise during the IPO.
He said that before he took over as president of the company, VSIC was not doing very well. The company is one of the businesses he inherited from his father, the late Don Manuel Gotianuy.
In 2007, the com-pany’s revenues grew to P50 million-worth of gross premiums from P3 million in 1996.
Go attributed the success of the company to hard work and luck.
“Without hard work or luck, you can’t do anything,” he said.
VSIC started operating in Cebu in 1931 and has since expanded to five other branches nationwide.
Its products and services include fire and allied perils, bonds, motor cars, equipment floater insurance, individual and group personal accident, travel, money, securities and payroll, marine cargo and engineering lines. (DME)
For Bisaya stories from Cebu. Click here. (July 16, 2008 issue)
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