By Alexandria Grace C. Magno, Reporter
THE PHILIPPINES is prone to meet its goal of 4 initial public offerings (IPOs) this 12 months as market conditions improve and regulatory hurdles ease, based on analysts.
“I feel 4 IPOs are achievable for the Philippine Stock Exchange, Inc. (PSE) this 12 months, supported by improving market conditions, firmer investor sentiment, and a lower rate of interest environment,” DragonFi Securities Equity Analyst Jarrod Leighton M. Tin said in a Viber message.
“We see credible candidates resembling Mynt and Hann Holdings potentially moving forward with listings if momentum holds,” he added.
The PSE expects 4 IPOs in 2026. A number of the most anticipated listings include the electronic wallet platform GCash and PNB Holdings Corp. (PHC), which plans to list by means of introduction.
“It’s possible for PSE to hit its goal of 4 IPOs, especially after today’s news on Securities and Exchange Commission’s (SEC) free float limits for brand spanking new listings, which could pave the way in which for the much-awaited GCash IPO,” BDO Securities Corp. President John Tristan D. Reyes said in a Viber message on Wednesday last week. “Then again, PNB Holdings remains to be addressing some regulatory hurdles.”
The SEC has eased minimum free float requirements for giant IPOs within the Philippines through Memorandum Circular No. 11, introducing a tiered public ownership framework.
Under the circular signed by SEC Chairperson Francisco Ed. Lim on Feb. 24, corporations with an expected market capitalization of over P50 billion on the time of listing will need to have a minimum public float of 15%, subject to a minimum offer size of P10 billion.
The 15% minimum public float is higher than the 12% proposed within the SEC’s draft circular, nevertheless it could enable mega-IPOs resembling Globe Fintech Innovation (Mynt) — the parent company of GCash — which earlier said that a 20% minimum public float was too high for its offering that might peg the corporate’s valuation at no less than $8 billion.
“Although the market bounced from ~5600 to the 6500-6600 range, the environment still feels fragile. Investor confidence stays shaky, and uncertainties around local economic growth, plus global risks like tariffs and geopolitical tensions, could still weigh heavily on valuations,” Mr. Reyes said.
He noted that these aspects could affect each the demand and provide sides.
“On the demand side, investors could remain cautious and ask for greater discounts for these prospective IPOs. On the availability side, corporations may hesitate in the event that they think they won’t get the valuation they need,” he added.
Last Thursday, the PSE index (PSEi) closed at 6,625.46, its highest finish in over 14 months, or because it closed at 6,641.35 on Dec. 12, 2024.
“I feel we’re still cautiously optimistic for the 12 months. Probably especially after last 12 months,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz told BusinessWorld on the sidelines of an event.
“For this 12 months, we’re hoping that the 4 IPOs could be reached. Although, at this point, based on the sentiment, we’re still considering that probably only half of them might push their listings,” she added.
In 2025, the PSE missed its IPO goal, recording only two listings out of the projected six.
The businesses that went public last 12 months were Cebu-based fuel distributor and retailer Top Line Business Development Corp., which debuted in April, and West Zone water concessionaire Maynilad Water Services, Inc., which accomplished its offering in November.
Hann Holdings, Inc., SM Prime Holdings’ real estate investment trust, and Razon-led Prime Infrastructure Capital, Inc. were amongst several corporations that shelved their IPO plans.
“For IPOs, if the market stays strong, that can be helpful for IPOs,” COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message. “I’m also optimistic regarding the amendment to the actual estate investment trusts (REITs) law as we could see more REIT IPOs.”
SEC Memorandum Circular (MC) No. 1, Series of 2026, revises the definition of income-generating real estate assets.
These include assets with regular or predictable money flows from leases, rentals, tolls, user fees, ticket sales, parking, and storage fees. Additionally they cover toll roads, railways, airports, ports, information and communications technology and energy infrastructure, data centers, parking facilities, malls, warehouses, fixtures, and real rights resembling usufructs, easements, and leases.
The SEC said the amendments are aligned with the objectives of the REIT Act by expanding eligible income-generating assets and allowing unlisted special purpose vehicles (SPVs) and incorporated joint ventures (JVs), consistent with global practices.
Meanwhile, Jesus Mariano P. Ocampo, president and chief operating officer of Investment & Capital Corp. of the Philippines (ICCP), said Philippine fundraising totals remained solid last 12 months despite falling in need of IPO targets.
He noted that the PSE saw strong activity overall despite limited IPOs.
In 2025, the PSE saw total capital raised from primary and secondary share sales and warrants jump 75% to P144.14 billion, from P82.37 billion the prior 12 months.
The PSE hosted two IPOs that 12 months, together with eight follow-on offerings and 14 private placements.
Mr. Ocampo also cited potential listings resembling GCash as prospects that might broaden market participation, particularly if marketed to on a regular basis retail users.
“We actually hope that GCash will go public and they’ll promote it on the grassroots level,” Mr. Ocampo told BusinessWorld on the sidelines of an event.
“What the issuers are really searching for is market participation. Will market participation improve? Will risk appetite return? Will investors go for dangerous assets again? I consider that’s what issuers need to see before they do the IPO,” Philstocks Financial Research Manager Japhet Louis O. Tantiangco told BusinessWorld.
He said net value turnover is currently volatile and has been tepid over the past week, expressing hope that it returns to pre-pandemic levels. “In case you can see that return out there, then perhaps you’ll be able to see more IPOs again,” he said.
In 2025, the stock market declined as a corruption scandal involving flood control projects shook public and investor confidence.
The PSEi closed 2025 at 6,052.92, down 7.29% from end-2024. On Nov. 14, the PSEi plunged to five,584.35, its weakest close in nearly five and a half years, or for the reason that 5,570.22 close on May 28, 2020.