By Revin Mikhael D. Ochave, A reporter
The Philippine Stock Exchange (PSE) aims to raise R120 billion next year as it anticipates the expansion of the market.
“This year we have P79 billion to raise money. Next year, I think we can do about P120 billion in capital raising, about a 50% increase. These include follow-on offerings (FOO), stock rights offerings, and private placements,” PSE President Ramon S. Monzon told reporters on the sidelines of a press conference in Makati City on Thursday.
Last month, Mr. Monzon said that PSE expects to have the first six communities offerings (IPO) and raising revenue of up to P150 billion by 2025.
The PSE has only three IPOs this year, short of its target market target of six. These were the mining company OceanaGold (Philippines), Inc. and renewable energy companies Citicore Renewable Energy Corp., and NexGen Energy Corp.
The market operator also failed to meet its goal of raising P175 billion this year.
“We had only three IPOs – small ones. But we had big FOOs who preferred it,” said Mr. Monsoon.
The PSE was supposed to have its fourth IPO this year with the public listing of Cebu-based gas station Topline Business Development Corp. (Topline).
However, Topline announced on November 18 that it had chosen to relocate its first quarter delivery time of 2025 to accommodate institutional investors.
Mr. Monzon said there is some uncertainty next year as US President-elect Donald J. Trump takes office on Jan. 20. Mr. Trump had vowed to impose higher tariffs on imports, crack down on illegal immigration and focus on domestic manufacturing.
“There is uncertainty. We don’t know what will happen. (Mr. Trump plans to) deport illegal immigrants. I think there are a few Filipino immigrants. If he brings in a lot of money in this country, our money (abroad) will decrease. It is very important to stabilize the economy,” he said.
“He is also trying to punish companies that go abroad. Our information technology and business process management (IT-BPM) industry employs approximately 1.9 million workers. That is an uncertainty that we don’t know what will happen,” he added.
The Philippines is one of the top destinations for US companies to export services.
A previous report by the Center for Strategic and International Studies (CSIS) revealed that 395 US firms invested 22.4 billion dollars in the Philippines between 2003 and 2021, of which 7.8 billion dollars or 35% went in the field of IT-BPM.
Managing Director of China Bank Capital Corp. Juan Paolo E. Colet said in a Viber message that the PSE’s 2025 revenue growth goal is achievable.
“PSE’s objective is possible considering that the market conditions are good for the collection of equity funds next year. For example, if SM Prime Holdings, Inc. real estate investment trust (REIT) and GCash will do their IPOs in the Philippines next year, then those two deals alone can easily raise P120 billion,” he said.
“Currently, the outlook for our stock market is still very fluid given the expected challenges and opportunities from Trump 2.0, so targets are subject to change,” he added.
Economist Rizal Commercial Banking Corp. Michael L. Ricafort said in a Viber message that low interest rates can help boost stock market activity.
“It can be achieved in the midst of better economic and market conditions, due to further reductions in the Federal Reserve rate and a reduction in the rate of local policy which can reduce the cost of borrowing, increase the demand for loans which can increase investment, create more jobs and other economic activities which can result. in the additional income of listed companies,” said Mr. Ricafort.
“If the stock market prices rise significantly in 2025, that will make it more attractive to sell more shares at a higher price, especially if those who have postponed the sale of shares are possible.work with them,” he added.
Sy-led SM Prime’s REIT, Prime Infrastructure Capital, Inc. led by Razon, Maynilad Water Services, Inc. and electronic wallet GCash are other big names that are said to be planning IPOs but with no specific timeline.
On Thursday, the bellwether PSE index fell 0.95% or 64.05 points to 6,638.54, while the broader index of all shares fell 0.66% or 25.14 points to 3,734.94.
BUYING
Meanwhile, Mr. Monzon said PSE hopes to finalize the acquisition of Philippine Dealing System Holdings Corp. (PDS Group) before the end of the year.
“We still have hope. It’s just November. We have a month to go. It is still a work in progress,” he said.
PSE is looking to buy up to 100% of PDS, operator of Philippine Dealing & Exchange Corp., which caters to the fixed income market by providing trading infrastructure.
Currently, the PSE holds 20.98% of the issued and outstanding capital of PDS Group, while the Bankers Association of the Philippines members and institutions hold 21%.
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