PHOENIX Tours International became Taiwan’s first travel consultancy to be publicly traded when it was listed on the Taiex stock exchange last month.
For Phoenix’s president, Antonio Liao, it was a long-awaited move. “We heard that Star Travel (another Taipei-based outfit) submitted its application for the over-the-counter market, so we had to run a little faster,” he said.
In Taiwan, equities are traded on two boards. The over-the-counter market has a minimum capital requirement of NT$50 million, while listing on the main board (Taiex) requires a minimum capital of NT$600 million plus an annual net profit equivalent to six percent of that.
Phoenix has the distinction of being the first travel consultancy to list on both.
Liao insisted his company’s listing was not driven by a need to raise capital. “Travel agents have enough cash,” he said.
“It is more about image. People will notice, and customers will feel more comfortable dealing with Phoenix. It will help us form alliances with partners in the trade, as well as in the globalisation of our business.”
Phoenix’ IPO is well timed, as Taiwan’s travel industry – barring a worldwide financial meltdown – is poised for growth. The country has opened its borders to mainland Chinese tourists in recent years, and the government has set a ten-year goal of increasing tourist arrivals from five to 10 million.
Liao named several other travel consultancies rumoured to be planning listings, but of them only one, Lion Travel, agreed to talk to TTG Asia e-Daily.
“We plan to have our IPO by the third quarter of 2013,” said Lion’s vice president, finance, Sam Huang. “Right now, the environment is good. Taiwan’s travel industry is growing and will continue to do so in coming years.
– Read more in TTG Asia, November 18 issue
By Glenn Smith
