More small and medium enterprises (SME) are deciding to debut at the Philippine Stock Exchange (PSE) to be able to raise funds for future expansions, according to the state-owned corporate regulator Securities and Exchange Commission (SEC).
In a statement, the SEC said it has noticed “a remarkable volume of applications from SMEs raising funds via initial public offerings.”
For 2015, the corporate regulator approved IPO plans of two SMEs — P185.89 million IPO of brokerage firm Philstocks Financial Inc. and the P207 million IPO of Italpinas Development Corp.
Another SME, Philippine Primark Properties Inc., has been waiting for the approval of the SEC to raise P1.69 billion via IPO.
This followed the three successful IPOs in 2014 which included the real estate firm DoubleDragon Properties Corp., software company Xurpas Inc., and luxury retailer SSI Group.
The SEC said it is well aware of SMEs’ limitations in accessing capital for their business growth.
The state-owned corporate regulator together with the Philippine Stock Exchange (PSE) is encouraging SMEs to examine financing options by considering tapping the capital markets.
Recently, both corporate regulators conducted a forum seminar for SMEs to introduce and explain how the IPO and stock market works and how it can be an effective way to raise funds for expansions.