THE Philippine Stock Exchange Inc. (PSE) said its net income in 2016 inched up by just 3 percent to P701.54 million from P682.8 million in the previous year as trading income was muted by the volatile markets.
In a statement, the PSE said operating revenues rose 4 percent to P1.26 billion from P1.21 billion in 2015, while operating expenses dipped by 1.5 percent to P592.6 million previously.
Listing-related income, which accounted for 44.2 percent of total revenue, rose 15.6 percent on the back of four initial public offerings (IPOs) and 39 additional or follow-on listings during the year.
The four companies that debuted last year are Golden Haven Memorial Park Inc. (P778 million), Cemex Philippines Holdings Corp. (P25 billion), Pilipinas Shell Petroleum Corp. (P18.425 billion), and Shakey’s Pizza Asia Ventures Inc. (P3.96 billion).
Service fees from the Securities Clearing Corporation of the Philippines grew by 10 percent and revenue from its data feed went up by 12.5 percent on higher market data subscribers.
Trading-related income dipped 2.2 percent as total value turnover was 10.3 percent lower at P1.93 trillion in 2016.
“Our revenues were affected by the volatile markets as it kept our trading-related income muted. But the decline in this revenue segment was more than offset by the multiple offerings we had, which picked up in the second half of 2016,” said Hans B. Sicat, PSE president and chief executive officer.
“This year, we believe we would have a healthy IPO and secondary offerings pipeline which could support the growth of listing revenues,” Sicat said.
“With the approval of the Dollar Denominated Securities and PPP Listing Rules, we have effectively diversified our product lineup for various types of offerings to take place in our market. We are also hoping that trading activity will pick up in the coming months,” he added.
Del Monte Philippines Limited (DMPL) is aiming to become the country’s first issuer of dollar-denominated securities. It plans to offer $100 million to $200 million for its first tranche targeted in March out of a planned $360-million issue.
For IPOs, only Wilcon Depot Inc. has so far secured approval from the Securities and Exchange Commission (SEC) to conduct a maiden share offer worth P7.9 billion, with market listing set for March 23.
Other companies still awaiting regulatory approvals for their planned IPOs include information technology firm Audiowav Media Inc. (P2.6 billion); food and beverage retailer The Big Chill Inc. (P500 million to 600 million); property developer Cebu Landmasters Inc. (P3.8 billion); celebrity game developer Xeleb Technologies Inc. (P800 million); and Mazda distributor Bermaz Auto Philippines Inc. (P1.24 billion), among others.
The PSE has said it expects five to eight companies doing IPOs this year.