By Revin Mikhael D. Ochave, Reporter
DOMESTIC initial public offering (IPO) activity is predicted to stay limited for the remaining of the yr amid uncertainties related to tariffs, in line with analysts.
Only three initial public offerings are expected to happen this yr, which can be half of the Philippine Stock Exchange’s (PSE) goal of six, said DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin in a Viber message.
Except for the lone IPO thus far — Cebu-based fuel distributor and retailer Top Line Business Development Corp. in April — Mr. Tin said two more corporations could push through with their public listing plans this yr, consisting of integrated resort operator Hann Holdings, Inc. and west zone water concessionaire Maynilad Water Services, Inc.
“The tepid IPO pipeline reflects a subdued market environment and lingering uncertainty over the US tariff policies, each of which proceed to dampen investor appetite and discourage corporations from listing. We imagine IPO sentiment will likely remain muted under these conditions,” Mr. Tin said.
United States President Donald J. Trump announced a 19% tariff rate for products from the Philippines following a gathering with President Ferdinand R. Marcos, Jr. in Washington. The tariff rate is marginally lower than the 20% that Mr. Trump threatened to impose, but higher than the 17% announced in April.
“Investor sentiment is being weighed down by global concerns equivalent to the trade tariffs, alongside local worries equivalent to inflation and rates of interest,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message.
Despite the cautious outlook, Ms. Estacio-Cruz said there remains to be some room for optimism.
Nevertheless, she said the planned IPOs of GCash operator Globe Fintech Innovations, Inc. (Mynt) and the true estate investment trust (REIT) of Sy-led property developer SM Prime Holdings, Inc. are unlikely to occur this yr.
“There’s some appetite for IPOs, especially for corporations with solid fundamentals or exposure to resilient sectors like gaming, tech, and logistics,” she said.
“Big names like GCash or SM Prime’s REIT may be a stretch this yr, but when market conditions hold regular, we could see a number of more listings, especially from firms which were waiting for the correct timing,” she added.
Jayniel Carl S. Manuel, Seedbox Securities, Inc. sales and trading department assistant manager, said in a Viber message that the local bourse could see three to 4 IPOs this yr depending on market sentiment.
“Realistically, I feel we’ll be lucky to see three to 4 IPOs push through this yr, assuming market sentiment stays cautious,” he said.
“While there’s still investor interest, most have gotten more selective, favoring proven names over riskier bets. Unless a serious player like GCash or SM Prime REIT surprises us, I don’t see a major pickup in IPO filings for the remaining of the yr,” he added.
On July 17, the Securities and Exchange Commission (SEC) approved the IPO of Hann Holdings, which expects to generate as much as P11.43 billion in net proceeds. The corporate is predicted to list its IPO on Sept. 23.
Maynilad postponed its IPO to no later than end-October from its initial listing date of July 17 to accommodate interest from cornerstone investors. The water provider goals to boost as much as P37.41 billion in net proceeds.
Last month, the PSE raised its goal for capital raising this yr to over P186 billion, with some P123.7 billion expected within the second half.
The market operator raised about P62.6 billion in the primary six months.
Pangilinan-led conglomerate Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is considered one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.