PSE sees ‘windfall’ of IPOs after elections


The Philippine Stock Exchange Inc. is expecting a windfall of capital raising activities immediately after the presidential elections, which would largely come from initial public offerings (IPOs) of companies belonging to various industries, such as real estate, services, industrial, and construction.

Hans Sicat, President and Chief Executive Officer of the PSE, said that despite raising just P13.44 billion as of May 6, the local bourse is confident that it will still meet its P200 billion target for 2016.

“If you look at our IPO pipeline, it is quite robust, we hope we could meet it [P200-billion goal] . . . Beginning the second half of this year . . . at least we have one transaction to restart the market, and others are only waiting for that first to restart,” Sicat said, after the local bourse’s annual stockholders’ meeting on Saturday.

The top executive, however, said that at the end of July or August the PSE would again assess whether the P200 billion full-year goal is attainable, based on the initial transactions from IPOs and stock rights offerings.

As to whether which company would first conduct an IPO, Sicat said, “It depends on who finishes all the processing first.”

To date, there are about 264 listed firms at the PSE.

Meanwhile, Roel Refran, PSE’s Chief Operations Officer, said that by July the local bourse is expecting between P40 and 50 billion from capital raising activities through IPOs from at least four companies which are engaged in real estate, services, industrial, and the construction business.

As of May 6, Refran said that they have generated P13.44 billion from market capital raising activities.

“Yes, it is still quite small compared to the P200-billion target, but we are hopeful that the market would restart after the elections,” Refran said.

So far, two applications for IPO have been filed with the Securities and Exchange Commission, that of Cement producer Cemex Holdings Philippines Inc. for almost P40 billion, and Villar Group’s Golden Haven Memorial Park Inc. which seeks to raise P787 million.


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