Total equity deals in the Philippine Stock Exchange amounted to P175 billion in 2013, about a fifth lower than that of the previous year due to external factors.
The level is expected to normalize back to the P200-billion level in 2014 as markets gradually get over the US Federal Reserve’s tapering of easy money, PSE president Hans Sicat said.
The PSE is expecting about 10 companies to go public this year, including those that will use the backdoor listing channel, Sicat said in a briefing.
In 2012, total equity deals in the stock market amounted to P219 billion.
But for 2013, Sicat said, the equity pipeline had been inactive for more than two months due to fears spawned by the US Fed’s tapering. The pipeline turned heavy once more in the last quarter.
“If we get to another P200 billion in 2014, that’s a great metric,” Sicat said.
In 2013, there were 10 listing activities at the PSE. Those that went public were Philippine Business Bank, Asia United Bank, AG Finance, Discovery World Corp., Harbor Star Shipping, Travellers International and Robinsons Retail Holdings. Singapore-listed Del Monte Pacific Ltd. listed by way of introduction, attaining dual listing.
Also listed in 2013 was the country’s first exchange traded fund (ETF)—First Metro Philippine Equity Exchange Traded Fund Inc. (FMETF).
Sicat added that PSE would report higher profits for 2013 compared to that of the previous year.
“We’re reasonably confident that it will be better,” Sicat said. “The financial performance of the exchange is a good barometer for how much deeper the market is, because it not just comes from listing and trading but also comes from selling our market data and other market activities.”
While the PSE always wants more corporate names to go public, thereby adding to the supply of equities, Sicat said it was also important to look at fund-raising activities aside from IPOs. Whether it’s a new tranche of rights offering or a follow-on offering, Sicat said this marked a vote of confidence among investors.—Doris C. Dumlao