PSE: P184.6B raised by firms

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This year’s capital-raising target may have been missed but the amount raised by companies is still the second-highest recorded at the Philippine Stock Exchange (PSE).

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A total of P184.6 billion was raised from initial public offerings (IPOs), follow-on offerings and private placements, the bourse said, below its annual goal of P200 billion.

The amount, however, is 20.9 percent higher than the P153.08 billion raised in 2014 and is surpassed only by the P219 billion recorded in 2012.

This came amid only four IPOs being conducted this year compared to the usual nine to 10 yearly, the PSE noted, adding that the 2015 capital raisings were composed more of follow-on offerings and private placements.

The four firms that joined the roster of listed companies this year were Crown Asia Chemicals Corp., SBS Philippines Corp., Metro Retail Stores Group Inc., and Italpinas Development Corp.

Average daily turnover this year was also higher, by 1.8 percent, at P8.96 billion from P8.80 billion in 2014.

Next year, the stock exchange is hopeful it would reach its P200-billion capital-raising target.

“We expect that the stock market will continue to be a preferred venue for fund-raising activities of both listed companies and privately-owned firms that are considering listing at the exchange,” PSE President and Chief Executive Officer Hans B. Sicat said in a statement.

“We look at 2016 with optimism and we hope market indicators will improve next year. We expect that the country’s solid macro-economic fundamentals will continue to drive stock market growth, aided by election-related and infrastructure spending,” Sicat added.

Sicat has said that the PSE was expecting eight to 10 listings next year, mostly in the first quarter, either through IPOs, listing by way of introduction or backdoor.

Among the firms likely to stage their public debuts are Datem Inc. and DM Wenceslao and Associates Inc., which shelved their IPO plans due to renewed market volatility.

The PSE index closed 2015 on Tuesday at 6,952.08, down 3.9 percent from its yearend close in 2014.

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