Small to mid cap firms to dominate 2016 IPOs

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The majority of 2015’s maiden public offerings—both completed and applied for—involved small to mid cap firms, a trend that is expected to continue in 2016.

“[T]hat is something,” said Vicente Felizmenio, director of the Securities and Exchange Commission’s Markets and Securities Regulation Department.

“The big boys already know about the capital markets, But . . . the new ones [that listed or sought to list), I think it is good,” he added.

Given the current IPO pipeline, Felizmenio claimed 2016 would be a good year, to be driven by up and coming companies with long term growth potentials.


Of the four initial public offerings that pushed through last year, he said three involved firms with small to medium market capitalizations: Crown Asia Chemicals Corp., SBS Philippines Corp., and Italpinas Development Corp.

The only large-sized company that listed in 2015 was Gaisano-led Metro Retail Stores Group Inc, he added.

Other small to mid caps that have pending IPO plans, meanwhile, include Gweilo Corp., Philstocks Financial Inc., Philippine Primark Properties Inc. and Pointwest Technologies Corp.

Other likely market debuts this year include the delayed listings of Datem Inc. and DM Wenceslao & Associates Inc.—which belatedly shelved their IPOs due to market volatility—as well as those of Company of Friends Inc., Green Power Panay Philippines Inc., and Pilipinas Shell Petroleum Corp, among others.

Small and mid cap firms that have been operating for at least two years and at least P100 million in capitalization—but not exceeding P500 million—can list at the PSE’s Small, Medium and Emerging (SME) Board.

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