The Philippine Stock Exchange (PSE) is lining up new listings that will perk up the market. PSE President Hans Sicate is also encouraging more small, medium and emerging (SME) companies to list.
Encouraged by the successful listing of two SMEs this year, Sicat said that more should access the market as a growing economy makes gains (from trading) more inclusive.
DoubleDragon Properties Corp., listed on April 7 raised P1.16 billion while Xurpas Inc., listed on December 2, raised P1.37 billion.
For 2015, Sicat earlier said that the PSE is expecting 10 companies to have its market debut, hoping to see more of manufacturing and consumer-related firms listing next year.
Among the anticipated listings next year are the IPO of Company of Friends Inc. (ProFriends), backdoor listings of National Bookstore via Vulcan Industrial & Mining Corp. and Platinum Group Metals Corp. via Southeast Asia Cement Holdings Inc., and the follow on offering of Del Monte Pacific Ltd.
Profriends is in affordable housing, while Platinum Metals is the second biggest exporter of nickel after Nickel Asia.
“The companies that listed in the SME Board this year supports this observation as we see smaller-sized and emerging companies starting to seek capital market-based funding to expand their operations,” he added.
SME Board-listed firms should have a minimum of P100-million capital stock, of which 25 percent must be subscribed and fully paid.
The company should also have a cumulative earnings before interests, taxes, depreciation and amortization (EBITDA) of at least P15 million, as well as a positive EBITDA in two to three years before and after listing in the SME Board.
Companies listed in the Main Board, on the other hand, requires firms to have at least P500 million in its capital stock for the last three years prior to listing in the exchange
“We hope that the market’s overwhelming response to the share sale of DoubleDragon and Xurpas will encourage more SMEs to consider listing at the Exchange,” Sicat said.
In view of this target, the PSE has conducted seminars and discussions with the Development Bank of the Philippines (DBP), start-up technology firms, and small and medium enterprise owners.
PSE missed its P200-billion fundraising target this year, confident that it will reach the benchmark by end of 2015.
As of end-September, the PSE has already raised about 60 percent or P128-billion funds, which consist of initial public offerings (IPO), backdoor listings, and follow on offerings—which take up the bulk of the funds raised so far.
Year-to-date, the companies that already listed in the stock market were the listing by way of introduction of Trans-Asia Petroleum Corp. and Top Frontier Investment Holdings Inc., the IPOs of Xurpas Inc., Phoenix Semiconductor Philippines Corp., SSI Group Inc., Double Dragon Properties Corp. and Century Pacific Food Inc.