By Revin Mikhael D. Ochave, Reporter
THE Philippine Stock Exchange (PSE) is aiming to boost P120 billion in capital next yr because it anticipates increased market activity.
“This yr, we’ve P79 billion in capital raising. Next yr, I believe we are able to do about P120 billion in capital raising, a few 50% increase. These include follow-on offering (FOO), stock rights offering, and personal placements,” PSE President Ramon S. Monzon told reporters on the sidelines of a forum in Makati City on Thursday.
Last month, Mr. Monzon said the PSE expects to have six initial public offerings (IPO) and to boost as much as P150 billion in capital for 2025.
The PSE only had three IPOs this yr, missing the market’s operator goal of six. These were mining company OceanaGold (Philippines), Inc. in addition to renewable energy corporations Citicore Renewable Energy Corp., and NexGen Energy Corp.
The market operator also fell wanting its goal to boost P175 billion in capital this yr.
“We only had three IPOs — small ones. But we had big preferred FOOs,” Mr. Monzon said.
The PSE was presupposed to have its fourth IPO this yr with the general public listing of Cebu-based fuel retailer Topline Business Development Corp. (Topline).
Nonetheless, Topline announced on Nov. 18 that it opted to maneuver its offer period to the primary quarter of 2025 to accommodate institutional investors.
Mr. Monzon said there’s some uncertainty next yr as US President-elect Donald J. Trump assumes office on Jan. 20. Mr. Trump had vowed to implement higher tariffs on imports, conduct mass deportation of illegal immigrants and deal with domestic manufacturing.
“There may be uncertainty. We don’t know what’s going to occur. (Mr. Trump plans to) deport the illegal immigrants. I believe there are just a few Filipino immigrants. If he does an enormous importation, then our (overseas) remittances will drop. It’s an important stabilizing factor for an economy,” he said.
“He’s also attempting to penalize corporations that go outside. Our information technology and business process management industry (IT-BPM) employs about 1.9 million employees. Those are the uncertainties that we don’t know what is going to occur,” he added.
The Philippines is one in all US firms’ top destinations for outsourcing services.
An earlier report by the Center for Strategic and International Studies (CSIS) showed 395 US firms have invested $22.4 billion within the Philippines between 2003 and 2021, of which $7.8 billion or 35% went to the IT-BPM sector.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the PSE’s capital-raising goal for 2025 is attainable.
“The PSE’s goal is doable assuming market conditions are bullish for equity fundraising next yr. For instance, if SM Prime Holdings, Inc.’s real estate investment trust (REIT) and GCash will do their IPOs within the Philippines next yr, then those two deals alone could easily raise P120 billion,” he said.
“At this point, the outlook for our stock market could be very fluid given the anticipated challenges and opportunities from Trump 2.0, so the goal should still change,” he added.
Rizal Industrial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that lower rates of interest could help boost stock market activity.
“It’s achievable amid higher economic and market conditions, in view of possible further Federal Reserve rate cuts and native policy rate cuts that would scale back borrowing costs, increase demand for loans that might increase investments, create more jobs and more economic activities that might result in more earnings of listed corporations,” Mr. Ricafort said.
“If local stock market prices go up further in 2025, then that might make it more attractive for more share sales at the best price possible, especially if those who deferred share sales would eventually push through,” he added.
Sy-led SM Prime’s REIT, Razon-led Prime Infrastructure Capital, Inc., Maynilad Water Services, Inc. and electronic wallet GCash are among the big names said to be planning IPOs but with no definite timeline.
On Thursday, the bellwether PSE index dropped by 0.95% or 64.05 points to six,638.54, while the broader all shares index retreated by 0.66% or 25.14 points to three,734.94.
ACQUISITION
Meanwhile, Mr. Monzon said the PSE is hoping to finalize a move to accumulate the Philippine Dealing System Holdings Corp. (PDS Group) before yearend.
“We’re still hoping. It’s just November. We still have a month to go. It remains to be a piece in progress,” he said.
The PSE is seeking to purchase as much as 100% of the PDS, the operator of the Philippine Dealing & Exchange Corp., which caters to the fixed-income market by providing trading infrastructure.
Currently, the PSE has a 20.98% stake of the issued and outstanding capital stock of the PDS Group, while the Bankers Association of the Philippines members and institutions have a 21% stake.
