PSE upgrades capital-raising goal to P170B
The Philippine Stock Exchange (PSE) has upgraded its capital raising target for the year by 42 percent after seeing an encouraging first quarter, expecting a “very successful year” for the bourse despite volatile market conditions.
As of May 14, the local equities market has raised P42.42 billion from one initial public offering (IPO), one follow-on offering (FOO) and five private placements, PSE president and CEO Ramon Monzon said on Friday.
This represents 51 percent of the P82.4 billion raised during the entire 2024.
In the coming months, the operator of the local bourse is expecting an additional P122.81 billion in capital raised from the stock market debut of Maynilad Water Services Inc., stock rights offer of ACEN Corp. and FOOs of Ayala Corp., Steniel Manufacturing Corp. and Alliance Global Group Inc.
Overall, this means that the PSE expects close to P170 billion raised from equities this year, coming from its original target of P120 billion.
“We expect this year to be a very high capital-raising year, a very successful year for PSE,” Monzon said during PSE’s Investor Day event.
The CEO’s optimism comes as the main share PSE Index (PSEi) struggles to regain its strength due to escalating tariff tensions across the globe.
Year-to-date, the PSEi is down 1.3 percent to 6,465.53. It has yet to breach its high of 6,625.17 in January, or before US President Donald Trump threatened to impose higher import tariffs.
Several brokers have already downgraded their outlook for the PSEi, citing the trade war.
For their part, BPI Securities Corp. president Mark Race said they were reassessing their index outlook to also take into account local macroeconomic conditions.
“We’re recalibrating because we see that, of course, there might be some trade agreements already, but the situation is fluid,” Race told reporters last week.
As to IPOs, Monzon did not specify whether he expected other new names to list on the local bourse this year, apart from Maynilad.
However, he noted that six companies that had participated in the PSE’s Listing Engagement Assistance Program were considered “IPO-ready” within the next year.
Monzon did not identify these firms, although he pointed out that Top Line Development Corp., this year’s IPO curtain-raiser, was a participant in the program.
He likewise reiterated that popular e-wallet GCash had yet to file for its IPO, touted to be the largest in Philippine corporate history with a value of up to P95 billion.
In the first quarter, PSE benefited from its gradual buyout of Philippine Dealing System Holdings Corp. as its net income grew by 5.1 percent to P254.67 million.
As of end-March, PSE’s equity interest in PDS reached 79.9 percent from 20.98 percent previously. Year-to-date, it stands at 91.6 percent.
