• Bourse likely to miss IPO target


    ‘Two to three more listings’ expected before yearend

    Market debuts for 2015 will be well short of initial forecasts as the Philippine Stock Exchange (PSE) only expects “two to three more” before the year ends.

    The bourse, which earlier in the year said it was expecting nine to 10 initial public offerings (IPOs), has cut this goal to five. Two companies have gone public so far and to date just one other is scheduled to stage an offering.

    Roel Refran, PSE chief operating officer, told reporters on Thursday that the exchange was “looking at two to three more listings” to follow Crown Asia Chemicals, which debuted in April, and SBS Philippines Corp. that listed in August.

    Set to follow in November is Metro Retail Stores Group, whose IPO plans were approved by the PSE and the Securities and Exchange Corp. (SEC) earlier this month.

    Already granted SEC approval but still to be green-lit by the PSE is Datem Inc.’s listing plan.

    Refran did not identify the third IPO likely to be staged before the year ends. He did say that there were 10 in the pipeline, expected to be carried over to the first quarter of 2016.
    “We are just making sure that the offers are compliant with the bourse’s requirements,” Refran added.

    Ephyro Luis Amatong, SEC commissioner, said in a separate interview on Thursday that the corporate regulator was still targeting to approve “five to six” IPOs this year on top of two bond issues also for approval.

    “We’re working hard to approve them towards December. I think this is very significant, the fact that this is happening despite the volatility,” Amatong said, claiming that despite worries over a possible US interest rate hike, demand for IPOs, follow-on offerings, other share sales and bond offerings were strong.

    Refran said two more IPOs this year would be “realistic,” but added that the exchange would try to achieve more.

    Market debuts were said to have been hindered by global volatility and confidence only recently picked up on expectations that a US Fed rate hike would be delayed to next year.
    Earlier this year, pipes and plastics maker Crown Asia raised P222.78 million from the issuance of 158 million primary common shares, while chemical trader SBS Philippines took in P1.15 billion in fresh funds.

    Gaisano-owned Metro Retail, which runs department stores and supermarkets, is hoping to raise P6.17 billion via the sale of 1.012 billion shares priced at P6.10 each. Final pricing will be on October 29 and the offer period will run from November 2 to 6. Listing at the PSE Main Board is scheduled for November 12.

    Construction firm Datem, Inc., meanwhile, wants to raise P4.65 billion from the sale of up to 329.046 million shares at P14.15 per. Based on its IPO plans, the offer period will run from November 16 to 24 and listing by the end of November.

    Other companies still in the process of threading the IPO pipeline include: D.M.
    Wenceslao & Associates Inc. (P21.7 billion), restaurant chain operator Gweilo Corp. (P75 million), Green Power Panay Philippines Inc. (P290 million), property developer Italpinas Development Corp. (P242 million), stock brokerage firm Philstocks Financial, Inc.
    (P185.89 million), Philippine Primark Properties, Inc. (P1.2 billion), BPO firm Pointwest Technologies Corp. (P2.09 billion) and Pilipinas Shell Petroleum Corp., among others.


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