MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) remains optimistic that the country’s initial public offering landscape will surpass last year’s performance despite a fresh wave of headwinds that could make market conditions unattractive for some IPO aspirants.
PSE president and CEO Ramon Monzon said he is confident the country can still do more IPOs this year than in 2024.
“Of course Maynilad and GCash are the high-profile ones, but there are still many others. We’re getting inquiries,” Monzon told The STAR.
In 2024, three companies conducted their maiden listing – OceanaGold Philippines Inc., Citicore Renewable Energy Corp. and NexGen Energy Corp.
The PSE is looking to double last year’s number with a total of six IPOs targeted for 2025.
So far, only one company has gone public this year, with Top Line Business Development Corp. raising P732.6 million from its IPO last month.
Top Line, which was supposed to be the fourth and final IPO in 2024, decided to pursue its maiden offer this year despite acknowledging the presence of broader market challenges affecting investor sentiment both locally and globally.
Internal and external economic and geopolitical headwinds weighed on the market during much of 2024, prompting IPO listing applicants to defer their public offering.
This year, they are again facing market uncertainties due primarily to US President Donald Trump’s tariff policies.
The Sy family’s SM Prime Holdings Inc. has already dismissed plans of a real estate investment trust listing this year given market conditions.
“I want capital markets to develop, but (this is) very difficult with current tariff headwinds and global uncertainties,” BDO Capital & Investment Corp. president Eduardo Francisco said.
Francisco told The STAR he would be happy with two to three IPOs for the year, alongside six to nine bond issuances and two to three preferred share issues.
Francisco earlier said internet service provider InfiniVAN Inc. is looking to raise between P2 billion and P3 billion from a planned IPO at the end of this year or early next year.
Investment & Capital Corp. of the Philippines senior managing director Manny Ocampo, who earlier this year said the PSE’s target of six IPOs for 2025 appears achievable, now believes that the best case for the country is four IPOs for the year.
Ocampo told The STAR that ICCP, which served as the issue manager, joint lead underwriter and joint bookrunner in the maiden offer of Top Line, is working on one more IPO by the fourth quarter.
He said that the IPO aspirant is in the fashion industry.
The ASEAN Exchanges, a collaboration among the exchanges in Southeast Asian countries, was previously looking at new listings in sectors such as real estate, technology and energy for the Philippines this 2025 as companies plan to tap the capital markets for funding.
It said the new listings would be complemented by a robust pipeline of corporate bonds, which are also seen to remain a key funding tool for local firms.
“Overall, despite global challenges, the Philippine capital market is set to experience steady expansion with increased listings, strong bond issuance and growing investor participation,” the ASEAN Exchanges said.